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Stocks

Asian markets seen lower as Trump tax plans digested and Samsung earnings eyed

PUBLISHED : Thursday, 27 April, 2017, 7:59am
UPDATED : Thursday, 27 April, 2017, 8:06am

Futures pointed to a lower open in Asia following the weaker finish on Wall Street as investors parsed details on US. President Donald Trump’s highly-anticipated tax reform plans.

While the proposed changes in the tax system included a cut in the corporate tax rate from 35 per cent to 15 per cent, the plan left investors with questions on whether the changes would increased the budget deficit. The White House also said a “one-time tax “ would be imposed on “trillions of dollars held overseas” by corporations.

Japanese futures indicated a higher open for the Nikkei 225 on Thursday, with Chicago futures off 0.36 per cent at 19,220 and Osaka futures lower by 0.62 per cent against the benchmark close of 19,289.43.

Australian SPI futures were down 0.25 per cent at 5,897 against the ASX 200 ‘s close of 5,912.036 in the previous session.

Trump unveils plan to slash corporate tax rates to 15 per cent in ‘biggest tax cut’ in US history

Stocks in South Korea are likely to be eyed by investors, with major companies including Samsung Electronics, LG Electronics and Samsung SDI reporting earnings on Thursday. South Korean conglomerate Lotte Group also announced restructuring plans that would result in several of its listed units being combined into a holding company in a bid to improved transparency.

US indexes closed marginally lower as stocks gave up some of their gains after Trump’s tax plans were outlined. The Dow Jones industrial average closed 0.1 per cent or 21.03 points lower to close at 20,978.09, the S&P 500 was off by 0.05 per cent or 1.16 points to finish at 2,387.45 and the Nasdaq was effectively flat, closing 0.27 points lower at 6,025.23.

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