Asia report: India sell-off as Modi landslide looks unlikely

4th Jun 2024 07:38

(Sharecast News) - Asian stock markets fell on Tuesday as investors digested a fall in US manufacturing and awaited results of the Indian election, with the widely-expected landslide win for Narendra Modi's right-wing BJP Party looking unlikely.

India's BSE benchmark index fell 6.46% to 71,493 in a sharp sell-off as early vote counting showed Modi's was ahead in just under 300 seats, while opposition parties were leading in about 200.

Under India's election laws, the party or alliance that wins more than 272 seats in the 543-member parliament can form the government.

In Japan, the Nikkei stock index fell 0.35% to 38,804. Auto shares were lower after the transport ministry found irregularities in applications to certify some models.

Toyota Motor shares were down 1.26%, and Honda Motor slid 2.63%.

In Australia the S&P/ASX 200 index closed 0.3% lower at 7,737.1 points as mining majors declined on the back of weaker commodity prices.

Investors were also waiting on GDP figures later tomorrow as data on Tuesday showed the country's current account unexpectedly swung into deficit in the March quarter after imports jumped and prices for commodity exports fell.

Analysts forecast GDP growth 0.2% in the March quarter, while annual growth is seen at 1.2%.

Hong Kong's Hang Seng Index was up 0.42% to 18,481 and China's Shanghai Composite gained 0.41% to 3,091.

Reporting by Frank Prenesti for Sharecast.com