Mainland China's Stocks Tumble Amid U.S. Election Jitters

Mainland China's stocks fell after two weeks of growth, hindered by the U.S. presidential election's uncertainty and potential higher tariffs affecting Sino-U.S. relations. Despite recent economic recovery signs, the prospect of increased tariffs led to cautious currency trading and concerns over exports.

In a volatile trading session, mainland China's stocks closed lower on Friday, abruptly ending a two-week winning streak. Investors were spooked by the looming U.S. presidential election and its repercussions on Sino-U.S. diplomatic ties.

The possibility of higher tariffs on Chinese exports, irrespective of the election's outcome, prompted currency traders to brace for increased fluctuations in the Chinese yuan. ANZ economists remarked that China's export sector remains vulnerable despite shifts in the U.S. presidency.

Meanwhile, it's anticipated that China will counteract external trade challenges by stimulating domestic demand. Economic recovery efforts are already yielding results, with October seeing a rise in home prices and manufacturing activity. Nevertheless, market instability continues as the Shanghai Composite, CSI300, and Shenzhen indices are down.

(With inputs from agencies.)