By Chathushka Perera
New York, USA (CWBN)Stock markets in Asia, including Tokyo, Shanghai and Hong Kong, took a hit from the drops in Wall Street and as hopes of a US stimulus package being achieved prior to the Presidential Election in November, draws further from reaching a deal with the US Treasury Secretary, Steven Mnuchin, who downplays a deal. The development comes into play as Wall Street, takes a tumble amid the on-going health and political crises in the US, resulting in a depreciating dollar.
In his statement, the Treasury Secretary claims that the challenge faced by the stimulus package involve a series of over-the-phone discussions with the Speaker of the US House of Congress, Nancy Pelosi, which failed to reach a consensus, and the lack of support from the Democratic leadership. The Democrats has demanded the Trump Administration to rethink its offers, and further rejecting Senate Republican Leader, Mitch McConnell’s idea for a small scale strategy.
Major US banks, such as JP Morgan Chase & Co., S&P 500 and Citigroup Inc. indicated a slip as investors begin to worry over loans loses of 2.87 billion USD in the third quarter.
The business sector has described the back and forth approach taken up by US leadership as a “rollercoaster ride in terms of communication” as the economy faces pockets of stress, which could be overcome by a stimulus package until a vaccine is brought forward.
Meanwhile, Chinese President, Xi Jinping, due to make an announcement of his government’s intentions for regional markets.
Nonetheless, experts are certain that a Democratic win in the November elections would actually result in the growth of Asian markets, as current US Foreign Policy appears unpredictable and undependable. China, which is the only major economy to start pulling back its markets from the Covid-19 pandemic drop. Other regions are expected to face a lagging return.
