Investing.com– Most Asian stocks fell on Wednesday as risk appetite was quashed by anticipation of a tight U.S. presidential election and a barrage of key economic readings this week.
Japanese markets remained the outliers, extending recent gains as heightened political uncertainty in the country fueled more bets that the Bank of Japan will not raise interest rates further.
Regional markets took middling cues from Wall Street, where buying into technology stocks put the NASDAQ Composite at record highs, while most other sectors sank on Tuesday.
But Wall Street futures rose in Asian trade, underpinned by strong earnings from Alphabet Inc (NASDAQ:GOOGL). Tech majors Meta Platforms Inc (NASDAQ:META) and Microsoft Corporation (NASDAQ:MSFT) are set to report on Wednesday, while Amazon.com Inc (NASDAQ:AMZN) and Apple Inc (NASDAQ:AAPL) are due on Thursday.
A slew of key U.S. economic readings are also due in the coming days, while the Federal Reserve is set to meet next week.
Japan’s Nikkei surges on tech gains, BOJ anticipation
Japan’s Nikkei 225 index was the best performer in Asia on Wednesday, rising more than 1%, while the TOPIX index added 0.8%. Gains in technology stocks were a key boost to the Nikkei, with local tech majors tracking gains in their U.S. peers.
Japanese markets extended recent gains after the ruling Liberal Democratic Party lost its parliamentary majority in the recent elections, presenting an uncertain outlook for local politics.
But this scenario fueled bets on more fiscal spending by the Japanese government, while increased uncertainty is also expected to keep the BOJ from raising interest rates further. The yen slid on this notion, benefiting local stocks with export exposure.
