NEW YORK:Asian stocks were mixed on Wednesday as investors anxiously awaited results of U.S. runoff elections that would determine the legislative balance of power in the world's largest economy while oil prices rose on news of planned output cuts.
Adding to broader uncertainty in markets was the latest twist in a regulatory saga over whether the New York Stock Exchange would delist three Chinese telecom giants on security grounds.
The Shanghai SE Composite Index rose 0.73% on Tuesday after the NYSE said it would not delist the companies, however, a person familiar with the matter later said the market operator would restart delisting plans.
In Asia, futures for the S&P 500 fell 0.07%, Australian S&P/ASX 200 dipped 0.43% and Japan's Nikkei 225 inched up 0.1%.
In the United States, the tense runoff elections in the state of Georgia will decide whether President Elect Joe Biden will have the majority in the Senate he needs to support his agenda or if he will face gridlock in the early stages of his term.
Results are due on Wednesday morning and analysts say Wall Street is likely set for a rally if Republicans win and a dip if Democrats gain control. Exit poll data on Tuesday suggested extremely tight contests.
"A market pullback seems both reasonable and healthy. But stocks won’t plunge to zero because there is a countervailing positive here," said Phil Orlando, Chief Equity Market Strategist, Federated Hermes of a potential Democratic sweep.
"A Biden honeymoon with Democratic Congress helmed by Nancy Pelosi and Charles Schumer would likely lead to more fiscal stimulus and infrastructure spending. That would serve as a temporary sugar high for stocks in 2021 before the bill comes due in 2022."
Bucking the trend in Asia, South Korea's main KOSPI index surpassed 3,000 for the first time, as investors looked towards a broad recovery in exports.
Wall Street trimmed earlier gains on Tuesday as political uncertainty and the discovery of a more contagious variant of the coronavirus in major hubs like New York City tempered bullishness about the vaccine roll out.
The Dow Jones Industrial Average rose 0.55%, the S&P 500 gained 0.71% and the Nasdaq Composite added 0.95%.
MSCI's gauge of stocks across the globe gained 0.06%.
Emerging market stocks rose 1.19%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.04% higher, while Japan's Nikkei %.
U.S. crude futures climbed 4.9% on Tuesday settling at $49.93 a barrel after Saudi Arabia pledged additional, voluntary oil output cuts. Brent crude futures also jumped 4.9%, settling at $53.60.
The dollar index fell 0.433%, against a basket of major currencies following China's decision to lift its official yuan exchange rate by its highest margin since it abandoned a dollar peg in 2005.
The benchmark U.S. 10-year notes last fell 12/32 in price to yield 0.9549%, from 0.917% late on Monday.
Bitcoin traded at $34,077.96, up 6.41%.
Spot gold XAU= added 0.4% to $1,949.46 an ounce.
Reuters
Wed Jan 06 2021
A woman wearing a facial mask, following the coronavirus disease (COVID-19) outbreak, stands in front of an electric board showing Nikkei index outside a brokerage at a business district in Tokyo, Japan, January 4, 2021. REUTERS/Kim Kyung-Hoon
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.