Asia markets were set to cautiously begin Monday following a decline in U.S. stocks in their Friday session after a shock from a since-corrected report about the investigation into possible collusion between then-candidate Donald Trump and Russia.
Australia’s SPI futures traded at 5,991, fractionally higher than the ASX 200’s last close at 5,989.75.
Nikkei futures pointed to a lower open for the Japanese market. Chicago futures traded at 22,655, while Osaka futures were at 22,640. The Nikkei stock average finished at 22,819.03 in the previous session.
ABC News reported on Friday that Michael Flynn, the former White House national security advisor, would testify that he was directed to make contact with Russians during the presidential campaign in 2016. Flynn pleaded guilty to lying to the FBI about his post-election contacts with Russia’s ambassador to the U.S.
That report hit the markets hard, but ABC later corrected the story to say its source had clarified that Trump gave Flynn the directive “shortly after the election” to discuss strategies for fighting the Islamic State extremist group.
The news “provides a reminder of the cloud hanging over the Trump administration,” Shane Oliver, head of investment strategy and chief economist at AMP Capital, wrote in a weekend note. He added that could cause “bouts of volatility next year and just adds to the likelihood that the GOP will lose control of the House in the November 2018 mid-term elections.”
“However, we remain of the view that it does not change prospects for tax reform (it’s already nearly there) and in fact just highlights the pressure on Congress to get it done,” Oliver noted.
In the early hours of Saturday morning, Senate Republicans narrowly passed a bill to overhaul the U.S. tax system. The GOP still needs to overcome significant disagreements for the House and Senate to craft a joint bill and send it to Trump’s desk. Republicans hope to reach a deal by Christmas.
In the currency market, the dollar rose from an earlier low of 92.881 to trade at 93.174 against a basket of currencies at 5:54 a.m. HK/SIN.
— CNBC’s Fred Imbert and Jacob Pramuk contributed to this report.
Source: cnbc china
Asia set for a cautious open as investors digest news out of Washington