Asian Markets in Limbo: U.S. Election and Geopolitical Tensions

The Asian markets experienced largely declining movements on Thursday as investors faced uncertainties ahead of the upcoming US presidential election on November 5. The Japanese Nikkei 225 fell by 0.5% in early trading to 39,069.20 points, while the Australian S&P/ASX 200 dropped by 0.3% to 8,153.20 points. Bright spots included the Hang Seng in Hong Kong, which rose by 0.3% to 20,433.83 points, whereas the Shanghai Composite fell by 0.3% to 3,258.04 points. A significant influence was the South Korean Kospi, which declined by 1.2% to 2,562.07 points. This followed the South Korean government’s announcement of a suspected new long-range missile test launch from North Korea, interpreted as a signal to the US ahead of the elections. Details regarding the missile’s capabilities remain unclear but are likely to draw Washington's attention. Meanwhile, market participants are eagerly awaiting a monetary policy decision from the Bank of Japan, though analysts do not anticipate significant changes. Upcoming corporate reports from Asia and the rest of the world are also contributing to the investors' cautious stance. In the US, the S&P 500 showed a slight decline of 0.3% to 5,813.67 points, despite small fluctuations between gains and losses, and remains near its all-time high from October. The Dow Jones Industrial Average lost 0.2% and stood at 42,141.54 points, while the Nasdaq Composite fell by 0.6% to 18,607.93 points. A positive standout was Alphabet, whose stock rose by 2.8% after the company's financial results exceeded expectations thanks to its Google segment. In contrast, Advanced Micro Devices weighed on the chip sector following the release of quarterly earnings that merely met forecasts. Nvidia recorded a decline of 1.4% and was one of the biggest burdens for the S&P 500. Eli Lilly also suffered a slump of 6.3% due to concerns about two of its main products, while Trump Media & Technology Group struggled with a drastic loss of 22.3% after a volatile surge in recent weeks.