Investing.com– Most Asian stocks advanced on Wednesday, tracking overnight strength in Wall Street, while Chinese markets were volatile as early vote counting showed Donald Trump leading in the 2024 presidential elections.
Regional markets tracked an overnight rally on Wall Street, as heavyweight technology stocks rebounded from recent losses, as investors also positioned for a widely expected interest rate cut by the Federal Reserve this week.
U.S. stock index futures rose in Asian trade. Coverage by the Associated Press showed Trump with 210 electoral votes, compared 113 votes held by Kamala Harris, as of 22:48 ET (03:48 GMT).
Chinese stocks skittish as Trump leads
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes curbed early gains to trade in a flat-to-low range. Hong Kong’s Hang Seng index lagged, sliding 2.2%.
Trump has vowed to impose steep trade tariffs on China, heralding more economic pressure on the country when it is already struggling with persistent deflation and an extended property market slump. Chinese markets are also expected to see increased losses in the event of a Trump victory.
Focus this week was also on a meeting of the Standing Committee of China’s National People’s Congress, the country’s top political body.
The NPC is widely expected to outline plans for more fiscal spending, with analysts expecting at least 10 trillion yuan ($1.4 trillion) in new spending over the coming years.
Plans for more fiscal spending come after a slew of monetary stimulus over the past two years yielded few results.
JPMorgan analysts also said in a recent note that a Trump victory in the 2024 election could see Beijing unlock even more fiscal stimulus, given that Trump has threatened to impose steep trade tariffs against the country.
Japanese markets surge as yen weakens
Japan’s Nikkei 225 was the best performer in Asia on Wednesday, rallying 1.8%, while the TOPIX index added 1.4%.
Gains in Japan were driven chiefly by export-oriented stocks, as the yen weakened sharply against the dollar as investors braced for the results of the U.S. election.
Stronger technology stocks also boosted the Nikkei, as they tracked an overnight rally in their U.S. peers.
Purchasing managers index data also offered some positive cues, as data on the services sector showed a smaller contraction than initially expected through October.
Asian stocks upbeat with US elections, Fed meeting in focus
Broader Asian markets were mostly positive, with focus turning squarely to the results of the U.S. elections. Investors were hoping for a quick conclusion to the election, which is expected to clear out a major point of uncertainty for markets.
Australia’s ASX 200 rose 1%, while South Korea’s KOSPI added 0.1%.
Futures for India’s Nifty 50 index pointed to a flat open, after the index rebounded from an over four-month low on Tuesday.
Focus this week was also on a Federal Reserve meeting, where the central bank is widely expected to cut interest rates by 25 basis points.