Asia shares slide amid uncertainty over US tax reform

News


13 Nov, 2017

Asia shares slide amid uncertainty over US tax reform

Asian shares were lower on Monday, slipping back into cautious trade as investors eagerly await to see if US Republicans can secure a bill to drastically reduce corporate tax.

Japan’s Nikkei 225 was leading the losses in the region, closing down at 1.3or 300.43 points, to close at 22,380.99 — its lowest close since 31 October. This brought the MSCI’S Asia Pacific Index down by 0.5%. Excluding Japan, the region’s shares were down by just 0.1%.

However, energy-related stocks were mixed against the broadly declining index: JXTG Holding closed up at 1.69% while Inpex slid 1.66%, CNBC reports.

Elsewhere, across the Korean Strait, the Kospi fell 0.5% to end at 2,530.35 as gains in automakers and cosmetics stocks were offset by losses in manufacturing.

Down Under, the S&P 500 index ended its eight-week winning streak By Friday's Wall Street close as investors cashed out following growing uncertainty over a plan to overhaul the US tax system by the Trump administration.

This was after US Senate Republicans unveiled a tax plan that differed from the one given by the House of Representatives. Furthermore, there are few signs of a compromise with the head of the House of Representatives’ tax-writing committee opposing a proposal from Senate Republicans that would hike taxes for some middle-class Americans.

"All eyes are on what the Senate and the House of Representatives will do on their tax bills", said Nobuhiko Kuramochi, chief strategist at Mizuho Securities.

"That there is debate is not surprising at all. Still, it is an uphill moment for markets", he said.

Elsewhere, European shares are predicted to be largely unchanged from last week, with spread betters expecting France CAC and Germany's DAX top open almost flat.

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