Asian markets mostly traded lower following the US presidential debate between Vice President Kamala Harris and former President Donald Trump.
Historically, the US dollar has strengthened against other currencies when expectations for a Trump re-election increased, a trend known as the “Trump trade,” partly due to his stance on tariffs.
In currency trading, the dollar dropped 0.2% against the pound, which is valued at $1.31. It also fell to 141.72 Japanese yen from 142.41 yen, while the euro rose to $1.1036 from $1.1023.
Japan’s Nikkei 225 fell 0.8% to 35,867.33 in morning trading, and Australia’s S&P/ASX 200 lost 0.3% to 7,989.90.
South Korea’s Kospi edged down 0.2% to 2,517.44 after data showed the seasonally adjusted unemployment rate dropped to 2.4% in August 2024, the lowest in a year, as the number of unemployed declined.
Hong Kong’s Hang Seng fell 1.5% to 16,984.02, while China’s Shanghai Composite decreased 0.8% to 2,719.73.
On Wall Street, the S&P 500 index closed up 0.4% at 5,495.52, but concerns over slowing economic growth limited gains. The Dow Jones Industrial Average dipped 0.2% to 40,736.96 as bank stocks fell after warnings of potential weakness in the current quarter. The Nasdaq Composite gained 0.8%, ending at 17,025.88.
In the bond market, the yield on 10-year US Treasury notes declined to 3.64% from 3.70% late on Monday.
