Chinese shares fall as Asia markets trade mixed
Asia markets traded mixed on Monday as major Chinese indexes dipped in morning trade.
The Shanghai composite slipped by 0.95 percent and the Shenzhen composite fell 0.83 percent. Hong Kong's Hang Seng index traded fractionally higher.
In Japan, the Nikkei 225 retraced gains of more than 1 percent to trade near flat at 21,197.84 while the Topix index fell 0.14 percent.
South Korea's Kospi gave up early gains to trade down 0.36 percent as heavyweight Samsung Electronics added 0.24 percent while SK Hynix traded down 2.54 percent.
In Australia, the benchmark ASX 200 rose 0.98 percent, with all sectors trading up. The energy s ector was up 1.08 percent, materials gained 0.99 percent and the heavily weighted financial subindex was up 0.68 percent.
"With global equity markets suffering a massive sell-off in October, led by tech counters, the approach of November may be time to stock; so to speak," analysts at Mizuho Bank wrote in a morning note.
"Pointedly, whether this is ... a "healthy" and long overdue correction that is merely (and sensibly) taking account of monetary policy calibrations, and attendant global liquidity conditions or an alarming descend into potentially unruly bear markets," they said.
"The jury is still out, and perhaps it is useful to take stock of what's priced in, and drivers of equities at the margin; given the much wider (asset market) spillove r," the analysts added.
Political uncertainty in Germany and Brazil
Investors will likely follow the latest geopolitical developments around the world.
In Brazil, far-right candidate Jair Bolsonaro was declared the next president of Latin America's biggest country. Reports said that with 96 percent of ballots counted, Bolsonaro has 55.5 percent of the votes.
Bolsonaro pledged to reform government finances and reorient diplomatic relations in his first public comments on Sunday after winning the polarizing run-off vote, according to reports. Still, many Brazilians are concerned that he might curtail civil liberties, trample on human rights and muzzle freedom of speech.
On the back of Bolsonaro's election win, the Tokyo-listed Brazilian stock exchange traded fund rose 10.88 percent after earlier seeing gains of almost 14 percent. Brazil's stock market outperformed in the run-up to the election, contrary to the overall downward trend in global stock markets for October.
Meanwhile in Germany, Chancellor Angela Merkel's junior coalition partners gave her conservative Christian Democrats until next year to deliver more policy results, threatening to end their alliance if there is no improvement. Both parties suffered in a regional election on Sunday.
The euro traded at $1.1387 on Monday morning during Asian hours, easing from an earlier high of $1.1412.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.454 in morning trade, after seeing highs above 96.8 last week.
The Japanese yen was at 111.80 against the dollar, strengthening from levels above 112.8 last week.The Australian dollar was at $0.7087, after seeing lows around the 0.702 handle in the previous session.
â" CNBC's Sam Meredith, Reuters and The Associated Press contributed to this report.Source: Google News South Korea | Netizen 24 South Korea