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Asia Lower after U.S. Markets Falter

In early trading Wednesday, Asian markets were lower after a weak Tuesday in U.S. markets.

The Nikkei was down about 100 points or 0.69 percent at 14499.88. The Shanghai Composite was down 0.29 percent to 2059.67 and the ASX 2000-down about 0.1 percent to 4990.80. The Hang Seng was down 0.17 percent to 21348.42.

The Japanese yen gain strength against the dollar. It was up about 0.23 percent to 99.32.

Japan is anxiously awaiting this Sunday’s upper house elections. “Sunday’s a big day [for the yen],” Robert Rennie, global head of currency strategy at Australia’s Westpac bank told CNBC. “Presumably Abe wins the majority in the upper house and that gives him the mandate to move forward with his third arrow,” he added.

Japanese market watchers know that the “third arrow” of Japan’s economic recovery rests on how Abe fares in this weekend’s elections.

“If they [the upper house elections] do deliver a resounding victory for the LDP, it means the third arrow of ‘Abenomics’ can proceed apace,” said Ray Attrill, co-head of FX Strategy of Fixed income, currencies and commodities at National Australia Bank.

 

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