Asian shares slipped during the trade on Monday as investors keep close tabs on the tax reform plan that US Republicans have proposed. Meanwhile, the British pound similarly slumped over the growing scrutiny Prime Minister May is facing.
Japan’s benchmark Nikkei 225 slipped 0.7 percent. The fall in Nikkei also affected MSCI’s Asia-Pacific Index, which dipped 0.4 percent. Not including Japan, shares in the region slumped just 0.5 percent.
Mainland Chinese shares rose 0.6 percent to couple-year highs.
The S&P 500 index had snapped a winning streak, which lasted 8 weeks, by the close on Friday on Wall Street. Investors managed to take profits after US Senate Republicans unveiled a new tax plan, which was quite different from the House of Representative’s version.
The House’s tax-writing committee opposes a proposal from the Senate. The proposal, if implemented, would raise taxes for specific middle class Americans. In other words, there aren’t any big signs of a compromise yet.
“All eyes are on what the Senate and the House of Representatives will do on their tax bills,” said Nobuhio Kuramochi. Kuramochi is the chief strategist at Mizuho Strategist.
“That there is debate is not surprising at all. Still, it is an uphill moment for markets,” Kuramochi added.
Meanwhile, Uber is on the brink of an agreement that will let it sell a stake to Japan’s SoftBank. Shares of SoftBank dropped 1.11 percent.
In China, the Shanghai Composite upped 0.30 percent, while Hang Seng index climbed 0.27 percent.
Furthermore, Alibaba said it gained a record $25 billion in sales during Single’s Day this year. The figure was above last year’s $17.8-billion haul. Single’s Day occurs every November 11.
In other figures, Dow Jones Industrial Average closed at 23,429.97. Nasdaq Composite closed at 6750.94, higher 0.01 percent.
British PM Faces Doubts, Pound Drops
The pound skidded 0.7 percent in early trading in Asia. This followed reports suggesting that a group of Conservative MPs agreed to sign a certain letter.
Reportedly, 40 MPs have signed a letter of no confidence in British Prime Minister Theresa May, amid tensions over the Brexit process.
The British currency plummeted as much as 0.7 percent at $1.3105 against the dollar.
The report was believed to be enough to trigger a leadership challenge, which would further complicated Brexit negotiations.
As for other figures, the euro traded at $1.1647, slightly lower following its first weekly gain in four weeks last week. The dollar closed at 113.58 against the yen. It touched a week ago its near seven-month high of 114.735 yen.
Bitcoin plummeted as low as $5,555 on Sunday, mounting its weekly fall at 22 percent. This has been recorded as its biggest fall since early July. Investors have dropped it for Bitcoin cash.
The digital currency was down almost 25 percent, last trading at $5,948. It touched a record high of $7,888 last Wednesday.
Oil prices remained firm amid concerns over political uncertainties in Saudi Arabia. Worries over tensions between Saudi Arabia and it Sunni allies Shiite Iran are growing.
Brent futures traded at $63.50 per barrel, not far from last week’s $64.65, which was its two-year peak.