A global equities selloff deepened in Asian trading and Mexico’s peso weakened as polls indicated a tightening race ahead of next week’s American presidential election. The yen gained with the Swiss franc and gold as investors favored haven assets.
The MSCI Asia Pacific Index dropped by the most since September and futures signaled further losses for U.S. equities after the S&P 500 Index sank to its lowest since July. The yen rose for a second day, while the Swiss franc and gold were near their highest levels in almost a month. New Zealand’s dollar strengthened as jobs data damped prospects for interest-rate cuts in the nation and U.S. Treasuries edged higher ahead of a Federal Reserve policy decision. Crude oil fell after a report showed American stockpiles expanded.
The MSCI Asia Pacific Index declined 1.3 percent as of 1:36 p.m. Tokyo time. Japan’s Topix index slid more than 2 percent, retreating from its highest close since April before the nation’s financial markets shut on Thursday for a holiday, and South Korea’s Kospi index fell to its lowest level in almost four months.
Futures on the S&P 500 Index fell 0.3 percent after the underlying gauge slipped 0.7 percent in the last session. Alibaba Group Holding Ltd. and Facebook Inc. are among companies reporting earnings on Wednesday.
The Nikkei fell 1.8 percent to 17,134.68, the lowest closing price since Oct. 19. It was the biggest daily drop since early August.
China stocks ended lower on Wednesday as investors sought shelter after a global selloff in riskier assets amid increasing nervousness over a tightening U.S. presidential race.
The blue-chip CSI300 index fell 0.8 percent to 3,333.35 points, while the Shanghai Composite Index lost 0.6 percent to 3,102.73.
Hong Kong shares ended at their lowest in more than two months on Wednesday, joining a global sell-off in risk assets amid uncertainty over the U.S. presidential election next week.
Also damping sentiment was a slump in financial heavyweight Standard Chartered following the lender's confirmation of a Hong Kong investigation, and a tumble in energy shares as oil prices hit a one-month low.
The benchmark Hang Seng index fell 1.5 percent, to 22,810.50, while the China Enterprises Index lost 1.9 percent, to 9,519.87 points.
Reference: Reuters,Bloomberg
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