Investors worldwide are paying close attention to the U.S. election, as the results could heavily impact the global economy, according to BBC. Stock indexes in Asia were mostly up on Wednesday, with Japan’s Nikkei 225 climbing by 2.25% and Australia’s ASX 200 increasing by around 1%. Meanwhile, BBC reported that Chinese markets saw declines, as Hong Kong’s Hang Seng index dropped about 3% and the Shanghai Composite fell by 0.3%. The value of the U.S. dollar was also up, strengthening against major currencies like the euro, pound, and yen.
BBC noted that the U.S. election’s outcome could especially influence trade relations with Asia. If former President Trump wins, he plans to sharply increase trade tariffs, particularly on Chinese imports, which could create tension in Asian economies. Katrina Ell from Moody’s Analytics explained to BBC that Trump’s policies on trade are a big concern in Asia, as they focus on protecting American interests with strong tariffs. His approach also raises questions about his stance on defending Taiwan, an important producer of computer chips, if needed.
In the event that Kamala Harris wins, many investors expect her policies would largely follow the current approach, BBC reported. Harris is likely to continue President Joe Biden’s trade and foreign policies, which are seen as more predictable and less disruptive for global trade. Her administration may, however, push for tighter regulations on industries like banking and healthcare, BBC added. Additionally, Democratic policies on renewable energy might boost companies that produce electric vehicles and solar energy.
Apart from the election, there are other critical updates expected this week. BBC highlighted that the U.S. Federal Reserve will announce its latest interest rate decision on Thursday, with statements from Chair Jerome Powell being closely monitored. Then, on Friday, Chinese officials are set to release more details about efforts to address the economic slowdown in China, the world’s second-largest economy.
Adding to this, Bitcoin surged to over $75,000, hitting a record high, BBC shared, showing how even cryptocurrencies are experiencing significant shifts amid election uncertainties. Experts told BBC that while stock markets may experience ups and downs today, the U.S. dollar and Chinese stocks are most likely to be affected by the final election results.
Credit : BBC
https://www.bbc.com/news/articles/c6246e3w935o