Asian stocks traded higher as investors cautiously monitored the unfolding US presidential election, with early results showing a close race between Donald Trump and Kamala Harris. Markets are bracing for potential volatility as polls close and vote counting progresses in key battleground states.
In Japan, the Nikkei surged 1.45% to 39,034.33, reflecting gains across sectors as investors positioned themselves for potential shifts in US trade and economic policy depending on the election outcome. South Korea’s Kospi index rose 0.2% to 2,582.01, showing modest gains as traders awaited clarity on how the next US administration might influence trade dynamics in the region. China’s Shanghai Composite was up 0.37%, closing at 3,399.4, while the Shenzhen index also saw a positive uptick of 0.74% to 11,087.93.
Other notable indexes in the region showed mixed performances. Hong Kong’s Hang Seng Index (HSI) faced downward pressure, dropping by 1.11% to 20,773.94. In Australia, the ASX 200 climbed 0.81% to 8,197.6, driven by strength in financial and energy stocks. Singapore’s STI saw a slight increase of 0.14% to 3,586.71, while the SGX-CNBC China Growth index declined by 0.57% to 1,412.21.
S&P 500 futures edged up 0.2% to 5,825 in anticipation of the US election results, adding to Tuesday’s gains on Wall Street, where the Dow Jones Industrial Average rose 427.28 points, or 1.02%, and the S&P 500 jumped 1.23%.
Currency and commodity markets also reflected the cautious mood. The Japanese yen remained steady, though it has experienced volatility in previous US election cycles. The Mexican peso declined amid election uncertainty, and Treasuries erased earlier gains. In the cryptocurrency space, Bitcoin held near $70,000, less than 6% below its March record high, showing resilience as investors sought safe-haven assets.
Analysts noted that regardless of who wins the US presidency, investors are positioning for potential impacts on US interest rates, trade policies, and relations with major Asian economies. A Trump win could prompt renewed tariff threats and deregulation, while a Harris victory is seen as a continuation of Biden’s policies, which could foster stability in international relations but may imply tighter regulatory oversight.
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