TOKYO - Asian stocks fell on Wednesday after US lawmakers called for an impeachment inquiry into President Donald Trump, increasing the prospects of prolonged political uncertainty in the world's largest economy.
The US dollar nursed losses against most major currencies as the inquiry sets the stage for a fierce battle between Democrats and Trump's Republican Party over whether the president sought foreign influence to smear a political rival. US stock futures rose 0.06 per cent in Asia on Wednesday, but the mild gains are unlikely to improve sentiment for Asian shares.
It is unlikely that the impeachment inquiry would lead to Trump's removal from office. Even if the Democratic-controlled House voted to impeach Trump, the Republican-majority Senate would have to take the next step of removing him from office after a trial. The dollar index measuring the greenback against a basket of six major currencies was little changed after falling 0.3 per cent on Tuesday.Trump said on Tuesday Beijing had failed to keep promises it made when China joined the World Trade Organization in 2001 and was engaging in predatory practices that had cost millions of jobs in the United States and other countries.
Sterling traded at US$1.2473, down 0.2 per cent, having trimmed some of its overnight gains made following the UK court ruling.