On November 5, 2024, Asian shares exhibited a mixed performance following a drift in U.S. stock indexes ahead of the presidential election. Japan's Nikkei 225 index rose by 1.4% to close at 38,571.64, reflecting a positive sentiment in the market [d9d53093]. However, South Korea's Kospi declined by 0.4% to 2,578.50, influenced by recent missile launches from North Korea, which raised regional tensions [d9d53093]. Meanwhile, the S&P/ASX 200 in Australia also fell by 0.4% to 8,131.80, indicating a cautious approach among investors [d9d53093].
This fluctuation in Asian markets comes on the heels of a tumultuous day for U.S. stocks on November 4, where the S&P 500 dropped 0.3% to 5,712.69 amid growing uncertainty surrounding the upcoming election results and expectations that the Federal Reserve may cut interest rates [d9d53093]. The dollar strengthened against the yen, and oil prices experienced a slight increase, further complicating the economic landscape for investors [d9d53093].
Prior to this, on November 4, Asian shares had shown a mostly positive trend as China's leaders commenced a significant economic meeting, which was anticipated to yield new support measures for the economy. The optimism in the Asian markets was evident as Japan's Nikkei 225 index had previously risen 0.6% to close at 39,200.25, while South Korea's Kospi had gained 0.5% to 2,580.14 [dc1b6956].
The meeting in China was expected to address various economic challenges and introduce policies aimed at stabilizing growth, which has been under pressure recently [dc1b6956]. Additionally, oil prices surged by more than $1 a barrel, attributed to OPEC+ extending production cuts until the end of the year, influencing market sentiments across the region [dc1b6956]. As the U.S. election approaches, the interplay between U.S. political developments and Asian market performance will likely shape investor strategies in the coming weeks, especially as China’s economic policies unfold [25a20f0d].
