Asian Stocks Decline Following Biden's Withdrawal from the 2024 Presidential Race

Monday, 22 July 2024, 04:49

Asian markets experienced a downturn on Monday after President Joe Biden announced his exit from the 2024 presidential race. This announcement adds uncertainty to the future direction of the U.S. economy. Notably, the Hang Seng index saw a slight increase, while the Shanghai Composite experienced a decline, influenced by China's central bank's recent decision to cut the loan prime rate. This situation raises concerns over the economic implications of political changes and monetary policy adjustments.
Yahoo Finance
Asian Stocks Decline Following Biden's Withdrawal from the 2024 Presidential Race

Overview of Market Reactions

Asian stocks were mostly lower on Monday following the withdrawal of President Joe Biden from the 2024 presidential race, which he announced on Sunday. In his statement, he endorsed Vice President Kamala Harris to run against former President Donald Trump, further fueling uncertainties about the future of the world's largest economy.

Market Performance Highlights

  • The Hang Seng index in Hong Kong rose by 0.8%, reaching 17,548.33.
  • The Shanghai Composite index fell by 0.7%, to 2,961.41.

Impact of China's Monetary Policy

This decline in the Shanghai index follows an unexpected move by China's central bank to reduce the one-year benchmark loan prime rate to 3.35% from 3.45%. This adjustment aims to provide support for businesses as economic uncertainty looms.

Conclusion

The intersection of political changes and monetary policy continues to create ripples across global financial markets, raising concerns regarding economic stability.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe