US markets closed mostly lower, with Asian equities following suit.
Tokyo was 0.7 percent off by lunch, Hong Kong shed 1.8 percent and Shanghai fell 0.9 percent. Sydney eased 0.4 percent, Singapore sank 0.9 percent and Seoul was off 0.2 percent. Taipei, Manila and Jakarta were also well down.The dollar, which turned lower after the election results, picked up against most other currencies in New York and continued that trend in Asia, with emerging market and other higher-yielding units sharply lower.
Oil drops further
“There is a sense that for now US-related incentives have all come out. But of course, the US-China summit talks at the end of the month requires attention,” Mizuho Securities said in a note.”We expect the market’s attention for this month will go to Europe,” with the region’s overall growth, Italian fiscal conditions, and the Brexit negotiations in focus, Mizuho said.The Mexican peso plunged more than one percent after president-elect Andres Manuel Lopez Obrador introduced plans to slash the fees banks can charge clients. The leftist has worried the business sector with rhetoric about overhauling Mexico’s economic model when he takes office on December 1.The pound is attracting attention as a deadline approaches for Britain and the EU to reach a post-Brexit deal, with speculation the two sides are close to an agreement.Energy firms were deep in negative territory after another sharp sell-off in oil Thursday, which came on the back of data showing a surge in US stockpiles.Crude has taken a battering since hitting four-year highs last month as rising production, the brewing China-US trade war and easing concerns about the impact of sanctions on Iran. Both main oil contracts were down Friday.”When you factor in that Saudi Arabia and Russia have been ratcheting up production since June, there’s a good reason the bears are holding court and the primary reason why prices are plummeting,” said Stephen Innes, head of Asia-Pacific trade at OANDA.Among the worst-hit energy firms were CNOOC, which lost almost four percent in Hong Kong, while Tokyo-listed Inpex sank 2.5 percent and Australia’s Woodside Petroleum dropped 1.5 percent.