There was mixed trading reported for the Asian markets on Monday, but American futures spiked with investors digesting news of the Senate passing a crucial tax bill on Saturday.
Nikkei of Japan reported a decline of 0.2% and there was a drop in the Topix trading index as well. In Korea, Kospi managed to stand out by reporting a 0.47% increase in trading.
The e-mini futures of Dow Jones Industrial increased by 221 points reaching 24,459 while e-mini futures of Nasdaq rose by 31 points. The ASX 200 traded flat in Australia falling by 0.68 percent. Losses were reported by the four major banks of the country during the early morning session. ANZ shares dropped by almost 0.84% and declines of 0.51%, 1.3%, and 0.47% were reported for Commonwealth Bank, Westpac, and National Australia Bank respectively.
The mainland markets in China managed to reverse early losses for trading up. Losses close to 0.3% were retracted by the Shanghai index and it traded up by 0.12%. Almost flat trading was reported for the Shenzhen index.
Tax overhaul in the U.S.
Early Saturday morning saw the Senate Republican narrowly passing a bill aimed at changing the tax system in the United States. But the Senate and House will only be able to formulate a joint tax bill when the GOP overcomes certain major disagreements. Republicans are hopeful that things will fall into place by Christmas time.
Further, the narrow passing of the tax bill might have brought the Trump office some political relief, but it fails to eliminate fiscal uncertainty.
The Asian trading week kick-started after a reported drop in the American stocks last week. This decline was related to the discovery of some shocking insights out of the investigation probing into the controversial Russia-Trump connection case.
According to ABC News, the former security official of White House, Michael Flynn, admitted to being asked to make connections with the Russian government during Trump’s presidential campaign last year. Although the markets were significantly hit by the report, ABC later made corrections to the story and said that the source had been unclear while making the statement. Trump had given Flynn the order a short while after the presidential elections with the intention of discussing strategies that could help fight the extremist group in the Islamic State.