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| Version 1 | Version 2 |
|---|---|
| Asian markets flat as Barack Obama wins second term | Asian markets flat as Barack Obama wins second term |
| (35 minutes later) | |
| Asian markets were little changed as President Barack Obama was re-elected to a second term. | Asian markets were little changed as President Barack Obama was re-elected to a second term. |
| There are concerns whether Mr Obama and a Republican-dominated Congress will be able to negotiate a way to avoid the so-called fiscal cliff. | There are concerns whether Mr Obama and a Republican-dominated Congress will be able to negotiate a way to avoid the so-called fiscal cliff. |
| The cliff will see nearly $600bn (£375bn) of tax increases and spending cuts hit the US economy in January. | The cliff will see nearly $600bn (£375bn) of tax increases and spending cuts hit the US economy in January. |
| Japan's Nikkei 225 index was trading flat, while South Korea's Kospi and Australia's ASX 200 rose 0.5%. | |
| The fear is that the tax increases and spending cuts that could be enacted if there is no agreement over deficit reduction may derail a fragile US economic recovery, and in a worst case scenario even push the economy into a recession. | The fear is that the tax increases and spending cuts that could be enacted if there is no agreement over deficit reduction may derail a fragile US economic recovery, and in a worst case scenario even push the economy into a recession. |
| "We head into the fiscal cliff, trying to find compromise where it wasn't possible before," said Rob Ryan, director of markets strategy, Asia-Pacific for Royal Bank of Scotland in Singapore. | "We head into the fiscal cliff, trying to find compromise where it wasn't possible before," said Rob Ryan, director of markets strategy, Asia-Pacific for Royal Bank of Scotland in Singapore. |
| Broader concerns | Broader concerns |
| The spending cuts and increased taxes are not the only concern among investors. | The spending cuts and increased taxes are not the only concern among investors. |
| The US economy has been battling various other issues, not least the high levels of unemployment in the country, which have dented consumer sentiment and impacted growth. | The US economy has been battling various other issues, not least the high levels of unemployment in the country, which have dented consumer sentiment and impacted growth. |
| Despite encouraging jobless numbers last week, unemployment continues to hover close to 8%. | Despite encouraging jobless numbers last week, unemployment continues to hover close to 8%. |
| There are concerns amongst some analysts that the jobs market may not improve anytime soon and that the recovery in the US will remain weak. | There are concerns amongst some analysts that the jobs market may not improve anytime soon and that the recovery in the US will remain weak. |
| That does does not bode well for Asian economies as they rely heavily on US demand for exports and overall growth. | That does does not bode well for Asian economies as they rely heavily on US demand for exports and overall growth. |
| Global uncertainties | |
| Investors have also been wary of the developments in the eurozone, where the Asia shares flat on Obama victoryGreek Parliament is set to vote on further budget cuts on Wednesday. | |
| The parliament will vote on 13.5bn euros ($17.3bn; £10.5bn) of spending cuts, which include tax increases and cuts to pensions. | |
| These cuts are key to determining whether Greece can get the next 31.5bn euro tranche of its European and International Monetary Fund rescue package. | |
| Greece has warned that without this money, which will be used largely to recapitalise the country's banks, it will be bankrupt by the middle of the month. | |
| However, there have been protests in Greece against the proposed cuts. | |
| Analysts said that there were fears that it may take some time before Greece is given the money. | |
| "With Greece there are always a number of stages with any vote. It is a prolonged process to reach any conclusion," said Justin Harper of IG Markets. | |
| These concerns saw investors ditch riskier assets in favour of relatively safer ones. | |
| Spot gold rose 0.5% to a one-week high of $1,724.21 per ounce in Asian trade, reversing a 0.6% drop earlier in the day. | |
| Meanwhile, the Japanese currency, a traditional safe-haven asset, rose to as high as 79.81 yen against the US dollar from its four-month low of 80.68 yen. |