Asian shares mostly fall, tracking global decline

Asian markets were mostly lower on Friday, tracking a global decline in stocks hit by tepid tech earnings and investor nervousness less than a week before a tense U.S. election.

All three major U.S. indexes fell on Thursday, with the technology-rich Nasdaq Composite falling nearly three percent.

Microsoft and Meta beat profit forecasts, but their share prices fell – more than six percent and four percent respectively – after they announced plans to increase investment in artificial intelligence.

Apple reported earnings that were only slightly ahead of analysts’ expectations, sending shares lower in after-hours trading even as the company got a boost from iPhone sales.

“Asian markets are bracing for a volatile Friday, with high and rising bond yields dogging risk assets, rising AI costs and bleak future prospects dampening the rally in mega-cap tech majors,” said Stephen Innes, managing director, partner at SPI Asset Management.

“After the S&P and Nasdaq posted their steepest one-day losses in two months, don’t count on Wall Street to send any positive vibes.”

Analysts are watching U.S. Treasury yields rise, expecting the Federal Reserve may back off from making significant interest rate cuts amid generally strong U.S. economic data.

Just days before Tuesday’s US election, data showed the Fed’s preferred measure of inflation fell further in September – and is now just above the central bank’s long-term target of two percent.

But the figures failed to lift sentiment, despite being a positive signal for future rate cuts.

The Fed is expected to authorize a second cut at the end of its policy meeting next week, following a cut in September.

The cost of living in the United States has been a central campaign issue in the race for the White House between Vice President Kamala Harris and the former president. Donald Trump.

“Markets have already priced in some of the risks of a second Trump presidency ahead of the US presidential election,” Lloyd Chen, an analyst at MUFG Global Markets Research, said in a note.

“A Trump victory would likely weaken the outlook for Asian economies and currency markets due to lower trade and investment, as well as the Fed’s potential slowdown in rate cuts due to the inflationary implications of Trump’s proposed economic policies (tariffs + broader budget deficits). “

Investors are also waiting for fresh data on jobsanother key issue for American voters.

U.S. nonfarm payrolls data due later Friday is expected to show 100,000 jobs were added last month, Bloomberg reported.

IN Asia trading, Tokyo shares fell more than two percent.

Hong Kong and Shanghai rose after mainland Chinese markets rose sharply on Thursday following a better-than-expected manufacturing report.

Taiwan shares fell more than a percent as markets reopened after one of the biggest typhoons to hit the island in decades killed at least two people. Peoplecaused floods and landslides, and closed schools and offices.

Sydney, Wellington, Singapore, Jakarta, Manila and Kuala Lumpur fell, but nothing changed in Seoul.

Oil prices continued to rise (WTI topped $70 per barrel) following reports that Iran was planning a major retaliatory strike against Israel.

Key figures around 03:00 GMT

Tokyo – Nikkei 225: down 2.3 percent to 38,196.53.

Hong Kong – Hang Seng Index: rose 0.8 percent to 20,487.34.

Shanghai Composite Index: up 0.7 percent to 3,301.91.

Euro/dollar: DOWN to $1.0878 from $1.0883 on Thursday.

Pound/Dollar: DOWN to $1.2892 from $1.2896.

Dollar/yen: rose to 152.27 yen from 152.00 yen.

Euro/pound: DOWN to 84.37 from 84.38p.

Brent North Sea crude: up 1.5 percent to $73.87 per barrel

West Texas Intermediate: up 1.6 percent at $70.37 a barrel.

New York – Dow Jones Industrial Average: DOWN 0.9 percent to 41,763.46 (close)

London – FTSE 100: DOWN 0.6 percent to 8,110.10 (close)

Source: AFP