Asian stocks steady, European stocks mix on Joe Biden’s tax proposition

Gulf Today Report 

Asian stocks markets mixed on Friday in a reaction to a report that President Joe Biden will propose raising taxes on the wealthiest investors. 

Shanghai, Hong Kong and Seoul rose while Tokyo and Sydney retreated.

The Shanghai Composite Index rose less than 0.1% to 3,466.68 while the Nikkei 225 in Tokyo lost 0.8% to 28,960.35. The Hang Seng in Hong Kong gained 0.9% to 29,014.32.

The Kospi in Seoul advanced 0.2% to 3,183.58 while Sydney's S&P-ASX 200 shed 0.1% to 7,045.60. 

India's Sensex opened up less than 0.1% at 48,096.32. New Zealand and Jakarta rose while Singapore and Bangkok retreated.

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In a report, Edward Moya of Oanda said, Investors, are struggling "to navigate through a very muddled global outlook" and earnings reports that have "priced in a slow return to pre-pandemic life.” 

European stocks

European stocks steadied as investors examine the effect of the US capital gains tax hike.

The pan-European STOXX 600 dropped 0.4% and was on course for a 1% weekly drop, with a surge in global coronavirus cases also weighing. 

According to sources, Biden's administration is seeking an increase in the capital gains tax to near 40% for wealthy individuals, almost double the current rate.

"I don't think people are completely negative on the fact that those (US) tax changes are being flagged," said James McGlew, executive director of corporate stockbroking at Argonaut.

"Ultimately it's money that will feedback into the economy."