Asian stocks follow Wall Street lower on lack of US aid plan

Asian stocks follow Wall Street lower on lack of US aid plan

SeattlePI.com

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BEIJING (AP) — Asian stocks followed Wall Street lower on Thursday as investors watched Washington for signs of whether political leaders can agree on an economic aid plan in the two weeks before the Nov. 3 presidential election.

Market benchmarks in Shanghai, Tokyo, Hong Kong and Seoul retreated.

On Wall Street, the benchmark S&P 500 index lost 0.2% on Wednesday as U.S. political leaders wrangled over economic aid following the expiration of extra unemployment benefits that propped up consumer spending. Democrats are pressing President Donald Trump's Republicans to expand a proposed package.

The speaker of the House of Representatives, Nancy Pelosi, said she made progress in talks with the White House. But a potential agreement might face opposition in the Senate, where Majority Leader Mitch McConnell told fellow Republicans he warned the White House not to seal a relief deal before the election.

“Fiscal stimulus deal optimism has faded,” said Mizuho Bank in a report.

The Shanghai Composite Index lost 0.7% to 3,302.55 and the Nikkei 225 in Tokyo shed 0.6% to 23,489.51. The Hang Seng in Hong Kong retreated 0.1% to 24,719.12.

The Kospi in Seoul was 0.7% lower at 2,353.28 and Sydney's S&P-ASX 200 declined 0.3% to 6,173.80.

India's Sensex opened down 0.2% at 40,623.74. New Zealand, Singapore and Jakarta also retreated while Bangkok advanced.

Markets are swinging between optimism about possible development of a coronavirus vaccine and uncertainty about the U.S. economic outlook without an aid package.

On Wall Street, the S&P 500 declined to 3,435.56. The Dow Jones Industrial Average lost 0.4%. The Nasdaq composite gave up 0.3% to 11,484.69.

Industrial and health care stocks declined. Communications services gained. Social media stocks rose after the...

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