TOKYO (Reuters) - Asian shares wobbled on Tuesday, supported by Wall Street gains although sentiment was tempered ahead of the U.S. midterm elections, the first major electoral test of President Donald Trump’s big tax cuts and hostile trade policies.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged down 0.1 percent, weighed by a fall in and Chinese shares and technology shares while Japan's Nikkei .N225 managed to gain 1.0 percent.
Shares in Asia-Pacific Apple suppliers such as Taiwan’s Hon Hai Precision Industry (2317.TW), eased after Apple Inc (AAPL.O) lost 2.8 percent after the Nikkei newspaper reported that the company had told its smartphone assemblers to halt plans for additional production lines dedicated to the iPhone XR.
On Wall Street, the S&P 500 .SPX gained 0.56 percent, with financials such as Berkshire Hathaway (BRKa.N) supported by strong earnings.
In oil markets, crude prices wobbled near multi-month lows after the United States granted eight countries temporary waivers allowing them to continue buying oil from Iran as Washington formally imposed punitive sanctions on the Islamic republic.
Ahead of Tuesday’s U.S. elections, investors generally expect opposition Democrats to take over the House of Representatives while Trump’s Republican Party is tipped to retain the Senate.
While political gridlock between the White House and Congress could hinder Trump’s pro-business agenda and raise political instability, including hearings centring on the administration, some analysts say such an outcome may have already been priced in by investors.
If the Republicans retain their House majority, global stocks are likely to rally on hopes of more tax
