Asian stocks trade sideways, brace for U.S. elections; Nikkei down 0.38%
Published Nov 05, 2012 10:55PM ET
During Asian trading on Tuesday, Hong Kong's Hang Seng Index was down 0.56%, Australia's S&P/ASX200 was up 0.27%, while Japan’s Nikkei 225 Index was down 0.38%.
U.S. voters go to the ballot box later in the day to elect a new president, and President Barack Obama and Republican challenger Mitt Romney are in a tight race.
Until a winner is announced and electoral uncertainty ends, investors held back in edgy trading.
Fears the U.S. may face a repeat of the 2000 recount also steered investors away from equities as did ongoing uncertainty in Europe, where Greece is facing opposition to a latest round of austerity measures.
The Greek government has sought approval for an austerity plan calling for EUR13.5 billion in spending cuts and tax hikes from Parliament, though coalition politicians have balked.
Greece must approve the reforms and pass a new budget to free up EUR31.5 billion in aid arranged by the International Monetary Fund, the European Commission and the European Central Bank.
Some coalition politicians have said they oppose wage cuts.
Greek Prime Minister Antonis Samaras has said proposed wage cuts are the last of such measures, though investors still sidestepped the single currency to avoid uncertainty.
Greece's lawmakers are due to vote on the austerity proposal on Wednesday, which could determine if Athens receives its next shot of rescue funding.
Australian shares rose after the Reserve Bank of Australia held its benchmark interest rate, the overnight cash-rate target, unchanged at 3.25%.
In Hong Kong, top decliners included China Merchant Holdings, down 5.87%, HKEx, down 2.30%, and COSCO Pacific, down 2.02%.
In Australia, top gainers included Aquarius Platinum, up 11.86%, Linc Energy, up 3.57%, and Arrium, up 3.55%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.17%, while Germany's DAX 30 futures pointed to a gain of 0.10%. Meanwhile in the U.K., FTSE 100 futures were up 0.15%.
Dow Jones Industrial Average futures were up 0.05%, while the S&P 500 futures were up 0.07%.
All eyes will remain focused on U.S. elections on Tuesday.
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Written By: Investing.com
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