Asian Stock Market: Risks wobble as Trump offers a tough fight in US elections

• Asian equities remain volatile, mostly in green, even as US election polls challenge blue wave hopes.
• US President Trump wins Florida, delay in results indicates a long night ahead.

Asian shares keep the early-day gains, even with receding optimism off-late, while heading into Wednesday’s European session. Although major forecasts favor the Democratic Party’s victory in the US elections, US President Donald Trump’s Florida win tames the risk-on mood.

The latest updates from the US 2020 elections suggest Democratic candidate Joe Biden wins in Arizona, which in turn increases the odds of a blue wave in the US Congress. The news adds to the hopes of further stimulus from the US government and favors the risks. However, Trump & Company gives a tough fight to the Democrats and the final results remain unclear ahead of November 06, which in turn challenges the market optimists.

That said, MSCI’s index of Asia-Pacific shares outside Japan prints 0.26% intraday gains near 2.5 years’ high while Japan’s Nikkei 225 rises over 2.0% by press time. Australia’s ASX 200 wobbles around 6,070 but New Zealand’s NZX 50 gains more than 1.0% by the time of writing.

Stocks in China also benefit amid hopes of a fresh start to the Sino-American relations if Democrats win. On the contrary, Hong Kong’s Hang Seng remains red, down 0.26% intraday, while South Korea’s KOSPI, Indonesia’s IDX Composite and India’s BSE Sensex remain on the positive side by press time.

Oil prices mark over 1.50% gains while aiming $39.00 but gold seesaws around $1,900, down 0.36% on a day, amid volatile markets. Further, S&P 500 Futures trim the recent gains to flirt with the 3,400 threshold but the US 10-year Treasury yields stay above 0.80% while portraying mostly positive trading sentiment.

Looking forward, traders will keep eyes on the election updates for fresh impulse while monthly activity numbers can also offer intermediate direction.

Check live updates: Four more years for Trump or a victory for Biden? – Live coverage