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| Version 0 | Version 1 |
|---|---|
| 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 and South Korea's Kospi were trading flat, while Australia's ASX 200 rose 0.5%. | Japan's Nikkei 225 index and South Korea's Kospi were trading flat, while 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 | |
| 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. | |
| 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. | |
| That does does not bode well for Asian economies as they rely heavily on US demand for exports and overall growth. |