Investing.com - Taking their cues from their U.S. counterparts, Asian stocks traded broadly lower Tuesday on escalating concerns about the outcome of Italy’s elections.
In Asian trading Tuesday, Japan’s Nikkei 225 fell 1.72% even as USD/JPY rose. U.S. shares plunged Monday on news that former Italian Prime Minister Silvio Berlusconi’s conservative party in position to take a majority in Italy’s senate.
Victory by Berlusconi and a senate majority for his party would likely trigger increased speculation that he will unwind austerity measures implemented by current Prime Minister Mario Monti, perhaps sending Italy down to a path to a euro zone departure.
Elsewhere, Nissan Motor CEO Carlos Ghosn said USD/JPY is still a long way from fair value. Ghosn has previously called an exchange rate of 100 for USD/JPY "neutral" value.
Hong Kong’s Hang Seng Index slipped 0.77% while the Shanghai Composite rose 0.35%. On Monday, Chinese energy giant Sinopec said it will pay just over USD1 billion for 850,000 acres in the Mississippi Lime formation controlled by Oklahoma-based Chesapeake Energy.
Australia’s S&P/ASX 200 Index dropped 0.6% after Reserve Bank of Australia Assistant Governor Guy Debelle said the Australian dollar would have to rise from current levels before the central bank could consider intervention. Since 2008, the Aussie has been the best-performing developed market currency against the dollar.
Despite a higher Kiwi and declining risk appetite stemming from negative headlines out of Europe, New Zealand’s NZSE 50 looks like one of the region’s standout bourses today with a gain of 0.27%.
Meanwhile, South Korea’s Kospi fell 0.52% as emerging markets shares declined and a weaker yen weighed on traders’ minds. Singapore’s Straits Times Index dropped 0.44%. S&P 500 futures are off 0.05% as of this writing.
In Asian trading Tuesday, Japan’s Nikkei 225 fell 1.72% even as USD/JPY rose. U.S. shares plunged Monday on news that former Italian Prime Minister Silvio Berlusconi’s conservative party in position to take a majority in Italy’s senate.
Victory by Berlusconi and a senate majority for his party would likely trigger increased speculation that he will unwind austerity measures implemented by current Prime Minister Mario Monti, perhaps sending Italy down to a path to a euro zone departure.
Elsewhere, Nissan Motor CEO Carlos Ghosn said USD/JPY is still a long way from fair value. Ghosn has previously called an exchange rate of 100 for USD/JPY "neutral" value.
Hong Kong’s Hang Seng Index slipped 0.77% while the Shanghai Composite rose 0.35%. On Monday, Chinese energy giant Sinopec said it will pay just over USD1 billion for 850,000 acres in the Mississippi Lime formation controlled by Oklahoma-based Chesapeake Energy.
Australia’s S&P/ASX 200 Index dropped 0.6% after Reserve Bank of Australia Assistant Governor Guy Debelle said the Australian dollar would have to rise from current levels before the central bank could consider intervention. Since 2008, the Aussie has been the best-performing developed market currency against the dollar.
Despite a higher Kiwi and declining risk appetite stemming from negative headlines out of Europe, New Zealand’s NZSE 50 looks like one of the region’s standout bourses today with a gain of 0.27%.
Meanwhile, South Korea’s Kospi fell 0.52% as emerging markets shares declined and a weaker yen weighed on traders’ minds. Singapore’s Straits Times Index dropped 0.44%. S&P 500 futures are off 0.05% as of this writing.