Asian stocks fell on Thursday in line with global peers, and the dollar nursed deep losses against the yen as uncertainty mounted over U. S. President Donald Trump’s future following reports that he tried to interfere with a federal investigation.
MSCI’s broadest index of Asia-Pacific shares outside Japan. MIAPJ0000PUS dropped 0.4 percent.
Japan’s Nikkei. N225 shed 1.2 percent, Australian shares lost 1.1 percent and South Korea’s Kospi. KS11 declined 0.5 percent.
Equities in Asia took cues from Wall Street, where the Dow. DJI and S&P 500. SPX both sank about 1.8 percent overnight following reports that Trump tried to influence a federal probe.
The allegations have not only thrown doubt over the future of the pro-growth policies that Trump promised, but they have raised the possibility he could end up leaving the presidency.
A small but growing number of Trump’s fellow Republicans called on Wednesday for an independent probe of possible collusion between his 2016 campaign and Russia, and one even mentioned impeachment.
The dollar sank broadly against its peers on the back of the turmoil in the White House.
The greenback was at 111.120 yen JPY= after reaching a two-month high above 114.00 just a week ago.
The euro extended its overnight surge to touch $1.1174 EUR=, its highest since November.
“There are two implications from the latest developments in Washington, first being the possibility of congressional procedures reaching an impasse and second is the potential of Trump being forced out, ” said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.
