You are here: Home » International » News » Markets
Business Standard

Asian indices decline on US stimulus package uncertainty ahead of polls

Wall Street's benchmark S&P500 had dropped 0.7 per cent on Wednesday, after Treasury Secretary Steven Mnuchin said he and congressional leaders were "far apart" on a new aid for the struggling economy

stock markets | US economy | Fiscal stimulus

PTI | AP  |  Beijing 

asian index, stock markets

Global and US futures declined on Thursday as hopes of US leaders agreeing on a new economic aid before the presidential election faded.

Wall Street’s benchmark S&P500 had dropped 0.7 per cent on Wednesday, after Treasury Secretary Steven Mnuchin said he and congressional leaders were “far apart” on a new aid for the struggling economy. Consumer spending, the main US economic engine, weakened after earlier additional unemployment benefits expired. Mnuchin “added another nail to the coffin on pre-election stimulus,” said Jingyi Pan of IG.

Thursday brings a EU summit that UK Prime Minister Boris Johnson had set as a deadline to get a trade agreement in place. As of Wednesday, talks remained in a deep rut over fundamental differences on the issues of state aid and fisheries.


On Wall Street, futures for the S&P500 and the Dow Jones Industrial Average were off 0.5 per cent. The Dow had lost 0.6 per cent and Nasdaq composite 0.8 per cent on Wednesday.

In Asian trading on Thursday, the Shanghai Composite Index lost 0.3 per cent to 3,332.18, while the Nikkei 225 in Tokyo sank 0.7 per cent to 12,827.82. The Hang Seng in Hong Kong lost 2.1 per cent to 24,154.15.

The Kospi in Seoul shed 0.8 per cent to 2,361.21 despite a strong market debut by the company that manages popular South Korean boy band BTS. The group faced criticism by Chinese internet users after its leader thanked Korean War veterans for their sacrifices.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, October 16 2020. 02:00 IST