Following a weekend of elections held in countries such as New Zealand and Germany, Asian shares were mostly mixed on Monday morning as the markets assessed the events that took place during the weekend.
During the past two days, Germany and New Zealand held polls which would determine their next leaders. In Germany, Angela Merkel was voted to lead a fourth term while the National Party in New Zealand failed to get an outright majority to form a government. They would now need the support of their political parties in the country to do so despite getting most votes.
The Kiwi fell to a new low in the past week following the results of the New Zealand elections and is down against the US Dollar at 0.7286 during the early Monday trading session.
The Nikkei 225 in Japan inched 0.4% higher on Monday to 20,386.32 due to the Japanese yen’s recovery that sent the stocks in the country higher. However, the Kospi in South Korea declined by 0.5% to 2,377.41 along with the Hang Seng index in Hong Kong fell 1% to 27,590.07.
In Japan, the markets also turned their attention to Prime Minister Shinzo Abe’s announcement regarding his two trillion yen stimulus package plans. The prime minister is expected to call for snap elections later during the day in a press conference.
China’s Shanghai Composite index also lost 0.4% to 3,340.5. In Australia, the S&P/ASX 200 index traded 0.1% higher to 5,688.60. The MSCI Asia Pacific ex-Japan index declined by 0.84% during the afternoon trading on Monday. Stocks in Taiwan and other Southeast Asian indexes ended lower during the day.
Shares in China fell during Monday’s session due to new property sales restrictions imposed in China’s eight major cities which will help with growing prices of housing. This led to shares of developers in China especially those based in Hong Kong losing ground during the trading session. Other cities include Changsha, Wuhan, Guiyang, Nanchang, Nanning, Chongqing, Xi’an, and Shijiazhuang who will be affected by the tighter housing restrictions.
Shares of Evergrande slumped by 11.2% during the trading session as well as Vanke in China and China Resources Land whose shares plunged 8.4% and 6.7% respectively.
Outside Asia, European shares slipped by around 0.3% to $1.1918 after most Asian shares slipped during Monday along with market concerns regarding the economy of China following the new restriction. Wall Street shares also edged lower with the Dow Jones Industrial average losing 0.1%.
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