Asian Shares Mixed as the Market Anticipated Midterm Election Results

Following the ongoing conclusion of the U.S. midterm elections, Asian shares mixed on Wednesday, 9th November 2022. Investors anticipate the results of the U.S. midterm elections and the announcement of the country’s inflation reports, scheduled for the same week.

China’s Inflation Data Display a Massive Decline

After the Cabinet ratified a 29.1 trillion yen ($190 billion) additional budget on Tuesday, 8th November, to support a projected economic inducement for the third-largest economy in the world, Tokyo’s Nikkei 225 index declined by 0.6%, pushing it down to 27,716.43.

Subsequently, the Chinese markets also saw a significant price drop following reports from the Chinese government that consumer price inflation has dropped from its initial 2.8% mark in September to 2.1% in October.

The producer price Inflation (PPI) entered the deflationary zone for the 21st consecutive month, falling to minus 1.3% from 0.9% in October. These numbers depict an even more unambiguous indication that the world’s second-largest economy is deteriorating.

The SPI Asset Management, Stephen Innes, commented that China’s current inflation data display an unfortunate outcome, with the PPI in a deflationary state and the CPI in a more vulnerable position than anticipated. He said that the inflation reports depict a shrinking demand which does not bode well for the country. 

Currently, the SSE Composite Index is down by 0.4%, pushing its price down to 3,052.48, while Hong Kong’s Hang Seng fell 1.5% to 16,307.72.

In addition, S&P/ASX 200 which is in Australia improved by 0.6% to 6,999.30, while the Kospi which is in Seoul gained 0.8% and rose up to 2,418.70.

Stocks Rally in Anticipation of a Republican House

While investors awaited the results of the midterms to determine their next steps in the future, Americans were placing votes with whispers of recession and reports of high inflation running rampant. 

Many analysts have placed bets under the prediction that the election results will announce Republicans as the victors and allow them to seize control of the House. 

On Wall Street, the Dow Jones Industrial Average (DJIA) surged 1%, pushing it to 33,160.83, while the Nasdaq composite rose 0.5%, pushing it up to 10,616.20. Finally, the S&P 500 surged by a modest 0.6% to 3,828.11 on Tuesday.

On the assumption that the Republicans win the midterms and take control of the House of Congress, the financial markets may fare well, significantly since stocks have surged in anticipation of the Republicans winning the elections. 

Alternatively, a Republican win may lead to less support from Congress when the recession arrives. Numerous economists are already predicting a significant slump in the coming months following Fed interest rate hikes intended to curtail inflation rates in the country. 

Leave a Reply

Your email address will not be published.


What is Copy Trade and How It Works?

Copy Trade Intro Copy trade or copy trading is a type of trading in which one trader (the “follower”) automatically copies the trades of another trader (the “leader”). This is done through a copy trading platform, which connects the follower and leader and allows the follower to automatically copy the leader’s trades in real-time. How […]

Coins Capital Review, – Is Coins Capital Scam Or Legitimate?

Coins Capital Trading Platform Rating 4.3 Summary Read our Coins Capital review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is Coins Capital scam or legit” and much more! Coins Capital Review You have been thinking for a long time if trading is for you. You have finally […]

AI Center Indicts ChatGPT Developer of Trade Law Violations: Claims Bias & Deception

The organization alleges that the creator of ChatGPT has violated Section 5 of the Federal Trade Commission Act with the release of GPT-4. This section of the act prohibits any practices or acts considered deceptive or unfair and that affect commerce. CAIDP has complained to the US Federal Trade Commission, intending to prevent the distribution […]

Investors Excited As XRP Market Capitalization Hits $20 Billion

It’s been wide jubilation today after XRP investors heard the announcement that the market capitalization has surged to $20 billion. XRP: a cryptocurrency developed and managed by Ripple, a San Francisco, United States, distributed data company. It was gathered that the coin itself responded to this development through a climb in price – it was […]

GlobalTrades Review, – Is Global Trades Scam or a Good Broker?

GlobalTrades Trading Platform Rating 4.6 Summary Read our Global Trades review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is scam or legit” and much more! GlobalTrades Review As people look at cryptocurrencies and their immense success, they are eager to start their own trading businesses. While […]