Asian stock markets declined overnight after Joe Biden announced his exit from the 2024 US presidential race.
Japan’s benchmark Nikkei 225 fell by 1.2% to 39,582.13, while the pound strengthened against the dollar. This market reaction came after President Biden endorsed Vice President Kamala Harris to face Donald Trump in the November election, heightening uncertainties about the future of the world’s largest economy.
Australia’s S&P/ASX 200 index decreased by 0.6% to 7,924.40, and South Korea’s Kospi dropped 1.4% to 2,756.62.
Sterling increased by 0.1% to $1.2921, with the dollar also weakening against the euro and the yen.
Joseph Capurso, a strategist at the Commonwealth Bank of Australia, commented that a decrease in the likelihood of a Trump victory should result in a weaker dollar, and the opposite holds true.
He added, “The crucial factor is what the polls reveal this week. Harris might be a stronger candidate, but will it be enough to shift the polls?”
