Asian stocks dip as U.S. political concerns grow

SYDNEY/NEW YORK (Reuters) – Asian stocks slipped on Tuesday as investors adjusted risk exposure heading into the U.S. election and ahead of a deadline for Washington to pass an economic stimulus bill, while Europe reported record daily coronavirus infections.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was 0.18% lower after U.S. stocks fell over 1% in the previous session, while Australian .AXJO and Japanese .N225 markets dipped.

European futures were also weaker, with Europe’s Stoxx 50 futures STXEc1 trading down 0.68% and London’s FTSE futures also 0.45% lower.

With little economic news in the region, the U.S. election and the economic impact of a rise in coronavirus cases in the United States and Europe was driving sentiment in Asian markets, investors said.

MSCI’s gauge of stocks across the globe .MIWD00000PUS was 0.11% lower.

Chris Weston, the head of research at Melbourne brokerage Pepperstone, said while there were worries about the U.S. stimulus package, recent declines were likely due to positioning ahead of the Nov. 3 presidential election.