Asian stock markets opened with mixed results on Wednesday as global investors remained focused on the US presidential election. With the world’s largest economy at a potential turning point, financial markets are closely monitoring the results for indications on future trade and economic policies.
Benchmark indexes across Asia reflected varied responses. Japan’s Nikkei 225 showed a solid gain of 2.25%, and Australia’s ASX 200 rose by around 1%. However, stocks in mainland China and Hong Kong saw declines, with the Shanghai Composite Index down by 0.3% and Hong Kong’s Hang Seng Index dropping roughly 3%.
US stock futures signaled a strong opening, following Tuesday’s gains where the Dow Jones, S&P 500, and Nasdaq all rose over 1%. Meanwhile, Bitcoin surged to a record high above $75,000, highlighting global investor appetite for cryptocurrencies amidst economic uncertainty.
Currency movements also attracted attention, as the US dollar rose more than 1% against other major currencies, including the euro, pound, and yen. The potential impact of the election outcome on the dollar and Chinese stocks could drive further volatility, noted Tim Waterer, chief market analyst at KCM Trade.
The US election outcome could significantly affect global trade, especially in Asia. Former President Donald Trump’s pledge to increase tariffs on imports, particularly from China, has spurred concerns across Asian markets, given the region’s reliance on trade with the US. In contrast, a potential Kamala Harris administration may signify a continuation of Joe Biden’s approach to trade, with fewer disruptions to global tariffs.
Other economic factors are also at play this week. The US Federal Reserve’s latest interest rate decision on Thursday, along with comments from Fed Chair Jerome Powell, could impact market sentiments worldwide. Additionally, China’s top officials are expected to reveal new plans on Friday to address economic slowdowns, adding another element of anticipation to the global financial landscape.