Asian shares experienced mixed results on Thursday as investors navigated uncertainty ahead of the upcoming United States presidential election on Nov. 5.
Japan's Nikkei 225 index dropped by 0.5% to 39,069.20, while Australia's S&P/ASX 200 slipped 0.3% to 8,153.20. Hong Kong's Hang Seng index rose by 0.3% to 20,433.83, but the Shanghai Composite fell by 0.3% to 3,258.04. South Korea's Kospi index saw a decline of 1.2% to 2,562.07 following reports of North Korea's suspected test-launch of a new long-range missile.
Market watchers were also anticipating the Bank of Japan's monetary policy decision, with expectations leaning towards the central bank maintaining the status quo. Earnings releases across Asia and globally further contributed to the cautious sentiment in the markets.
On Wall Street, the S&P 500 and Dow Jones Industrial Average both experienced slight declines, while the Nasdaq composite slipped by 0.6%. Alphabet's strong performance in the latest quarter boosted its stock by 2.8%, contrasting with Advanced Micro Devices, which met analysts' profit expectations, causing a drag on chip stocks.
In the bond market, yields inched higher following U.S. economic data releases. The Federal Reserve's recent interest rate hikes aimed at curbing inflation have impacted economic growth, with expectations of a rate cut at the upcoming Fed meeting.
Energy trading saw benchmark U.S. crude rising to $68.82 a barrel, while Brent crude reached $72.88 a barrel. Currency trading showed a slight uptick in the U.S. dollar against the Japanese yen and a marginal decrease against the euro.
Overall, the markets are closely monitoring economic indicators and geopolitical developments, including the U.S. election and North Korea's missile tests, as they navigate through a period of uncertainty and volatility.
