Asian investors held back on Tuesday ahead of the US midterm elections, with markets also watching for more quarterly results from major US technology companies. Japan’s markets were closed for a holiday. Analysts at ING said investors may get a clearer sense of the elections’ potential impact by Wednesday.
Technology stocks in Seoul were under pressure after a sell-off on Wall Street. Samsung Electronics fell 3.17%, while rival SK Hynix dropped 4.14%. LG Energy Solution lost 3.51%, Hyundai Motor declined 3.57%, and Kia fell 1.25%.
Chinese markets were also cautious despite measures announced by regulators on Monday to support capital markets. The steps included swap transactions and an improved lending facility to help listed companies buy back shares. Chen Jiande, a fund manager at Fujian Tianlang Asset Management, said the measures fell short of expectations and that some investors in battered technology stocks were using rebounds to exit.
The MSCI index of Asia-Pacific shares excluding Japan fell 0.9%, while South Korea’s market lost 3.8%. The Kospi declined 2.72% to 5,700 points. China’s CSI 300 was almost unchanged at 4,014 points.
Sources: Handelsblatt.