Asian stocks fall, gold at over 2-month high as Middle East tension weighs

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Watch onSINGAPORE - Asian shares slid on Thursday as risk aversion prevailed in the market due to mounting worries over Middle East tensions, while gold prices stayed near two-month peaks with investors seeking safer assets.

Anderson Alves, a trader with ActivTrades, said Asian equity markets were cautious,"spurred by traders adjusting their expectations for a lesser likelihood of a rate cut, increasing long-term yields, and mounting geopolitical uncertainties." "Such uncertainties could trigger defensive stances in Asia's short-term risk asset demand, especially as observers keep a vigilant eye on potential ripple effects," said Alves.

Investors in Asia will focus on earnings from Taiwan Semiconductor Manufacturing Co Ltd later in the day when the company is expected to report a 30% slump in third-quarter profit. Analysts though predict robust growth next year as the chip industry emerges from its current downturn. "I believe we can wait, watch and see how the economy evolves before making definitive moves on the path of the policy rate," Fed Governor Christopher Waller told the European Economics & Financial Centre Seminar in London.A Reuters poll of economists indicated that the Federal Reserve will keep its key interest rate on hold on Nov. 1 and may wait longer than previously thought before cutting it.

 

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Asian stocks fall, gold at over 2-month high as Middle East tension weighsMSCI's broadest index of Asia-Pacific shares outside Japan was 1.11% lower and on course for a 1.4% decline in the week. Japan's Nikkei sank 1.35%. The...
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