US politics, dollar moves as well as also also oil prices in focus

Asia markets traded most lower on Monday morning, following a decline in U.S. stocks on Friday after a shock by a since-corrected report about the investigation into possible collusion between then-candidate Donald Trump as well as also also Russia.

Dow Jones industrial average e-mini futures, meanwhile, rose 226 points to 24,464 at 10:53 a.m. HK/SIN. Nasdaq e-mini futures were up 30 points as well as also also the S&P 500 e-mini futures rose 15.5 points.

In Australia, the ASX 0 was down 0.18 percent as the heavily-weighted financial subindex fell 0.88 percent. The country’s so-called Big Four banks saw losses inside the morning session.

Shares of ANZ were down 0.98 percent, Commonwealth Bank declined 0.83 percent, Westpac fell by 1.55 percent as well as also also the National Australia Bank was lower by 0.78 percent.

Japan’s Nikkei 225 declined 0.27 percent in morning trade while the Topix index traded down 0.1 percent. Across the Korean Strait, the Kospi stood out as well as also also traded up 0.13 percent.

Chinese mainland markets were also lower in early trade. The Shanghai composite fell 0.28 percent as well as also also the Shenzhen composite was down 0.23 percent.

In Hong Kong, the Hang Seng index declined 0.3 percent.

ABC News reported on Friday that will Michael Flynn, the former White House national security advisor, would likely testify that will 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 will report hit the markets hard, however ABC later corrected the story to say its source had clarified that will 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 as well as also also chief economist at AMP Capital, wrote in a weekend note. He added that will could cause “bouts of volatility next year as well as also also just adds to the likelihood that will the GOP will lose control of the House inside the November 2018 mid-term elections.”

“However, we remain of the view that will that will does not change prospects for tax reform (that will’s already nearly there) as well as also also in fact just highlights the pressure on Congress to get that will done,” Oliver noted.

inside 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 as well as also also Senate to craft a joint bill as well as also also send that will to Trump’s desk. Republicans trust to reach a deal by Christmas.

While the tax bill narrowly passing may have been a “political relief” for the Trump administration, that will does not “eradicate fiscal uncertainty,” according to Vishnu Varathan by Mizuho Bank.

“Fact is actually, a possible U.S. government shutdown looms heading into 8th Dec as well as also also, in all likelihood, the backstop to avert a shutdown may be by the skin of the teeth as well,” he wrote in a Monday morning note. “as well as also also This kind of could keep long-end yield upside in check if caution trumps exuberance.”

inside the currency market, the dollar rose by an overnight low of 92.881 to trade at 93.086 against a basket of currencies at 9:50 a.m. HK/SIN.

Among some other currency majors, the Japanese yen fetched 112.67 to the dollar, weakening by an earlier low of 112.39. Despite the relative weakness inside the yen, major exporters remained under pressure: Toyota was down 0.26 percent, Sony reversed early losses to trade up 0.64 percent as well as also also Mitsubishi Electric was down 0.54 percent. Nissan shares rose 0.32 percent.

Typically, a weaker yen is actually a positive for Japanese exporters since that will increases their overseas revenue when converted back into local currency.

The Australian dollar weakened against the greenback to trade at $0.7603 by a previous high of $0.7613, as well as also also the euro was at $1.1874.

Elsewhere, oil prices were also lower. U.S. crude was down 0.74 percent at $57.93 as well as also also global benchmark Brent fell 0.61 percent at $63.34 a barrel.

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