Stocks mixed, dollar rises as traders weigh Trump shooting

TOKYO

Equity markets were mixed on Monday as investors weigh the impact of the assassination attempt on Donald Trump with data suggesting it has boosted his chances of being re-elected president.

Investors struggled to extend the rally enjoyed on Wall Street last week, where all three main indexes ended on a positive note despite a forecast-topping read on U.S. wholesale prices.

However, investors are keeping a close eye on developments in the United States after Trump was wounded at a rally ahead of the Republican convention this week.

While the odds of him beating President Joe Biden had been rising in recent weeks, they got an extra lift from the shooting.

Observers said a Trump victory could see lower corporate taxes, a boost for companies' bottom lines, but also an increase in tensions with China with fresh tariffs possible.

Still, Katrina Ell at Moody's Analytics said: "The assassination attempt might lead to a temporary boost in the polls for Trump, but a lot can change before November.”

"Financial markets are expected to soon refocus on the Federal Reserve and the growing likelihood of a rate cut in September."

The dollar rose on Monday, having softened last week owing to the prospect of lower rates, while equity markets were mixed.

Hong Kong, Taipei, Wellington, Bangkok and Jakarta dropped, while Shanghai, Seoul, Mumbai, Sydney, Singapore and Manila rose.

London opened lower Monday, while Paris and Frankfurt also retreated.