Asian Shares Mostly Lower On US Election Uncertainty

(RTTNews) - Asian stocks ended mostly lower on Thursday as rising yields on uncertainty over the U.S. election outcome weighed on the tech sector. Tesla's forecast-beating earnings provided some comfort for investors, helping limit regional losses.

The dollar held near three-month highs on increased expectations of a possible return of Donald Trump to the White House and growing bets the Federal Reserve may be more restrained in their easing pace.

Gold drifted higher amid safe-haven demand as Middle East tensions persisted. Oil prices were up more than 1 percent in Asian trading after retreating on Wednesday on data showing a larger than expected increase in crude oil inventories in the U.S.

China's Shanghai Composite index dropped 0.68 percent to 3,280.26 on concerns the U.S.-China tech war ma heat up - no matter whether Donald Trump or Kamala Harris wins the November 5 presidential election. Hong Kong's Hang Seng index fell 1.30 percent to 20,489.62.

Japanese markets reversed early losses to end modestly higher and the yen weakened across the board after Bank of Japan governor Kazuo Ueda said it is becoming difficult to judge how large future rises in borrowing costs will be.

Earlier in the day, a private survey showed Japan's factory activity contracted for the fourth straight month in October on subdued demand and weak orders.

The Nikkei average edged up 0.10 percent to 38,143.29 while the broader Topix index settled marginally lower at 2,635.57.

Seoul stocks fell notably as data revealed South Korea narrowly avoided a technical recession in Q3. The Kospi average dipped 0.72 percent to 2,581.03.

Korea Zinc shares jumped nearly 30 percent on the heels of the company's tender offer for its own shares, which concluded the previous day.

Australian markets ended slightly lower after the PMI manufacturing index hit a 53-moth low in October.

The benchmark S&P/ASX 200 slipped 0.12 percent to 8,206.30 while the broader All Ordinaries index closed 0.26 percent lower at 8,453.90. Tech shares led losses, with WiseTech Global falling 6.3 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index inched up 0.21 percent to close at 12,814.07.

U.S. stocks fell overnight as rising bond yields and uncertainty about the outcome of the Nov. 5 presidential election triggered a sell-off in the world's largest technology companies.

The 10-year yield rose to its highest level in almost three months amid bets the Federal Reserve will take a more measured approach on rate cuts.

The Dow dropped 1 percent and the S&P 500 declined 0.9 percent to extend losses into a third straight day, while the tech-heavy Nasdaq Composite tumbled 1.6 percent.