News18»Business
1-MIN READ

Asian Shares Turn Skittish As Early Results Show Tight Election

Asian Shares Turn Skittish As Early Results Show Tight Election

Asian share markets turned cautious on Wednesday, paring sharp early gains as results from the U.S. Presidential election hinted at a close race with no clear winner yet in sight.

SYDNEY: Asian share markets turned cautious on Wednesday, paring sharp early gains as results from the U.S. Presidential election hinted at a close race with no clear winner yet in sight.

Investors had initially wagered that a possible Democratic sweep could ease political risk while promising a huge boost to fiscal stimulus, hitting safe-haven dollar and bonds.

But signs President Donald Trump might snatch Florida sobered the mood and saw 10-year Treasury yields drop to 0.89% from a five-month top of 0.93%.

E-Mini futures for the S&P 500 retreated 0.2%, having earlier been up 1%. Japan’s Nikkei was still up 1% but South Korea went flat. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.3%.

The U.S. dollar likewise reversed early losses and gained 0.4% on a basket of currencies to 93.494 . The euro eased back to $1.1707 from a top of $1.1768.

Investors are still awaiting the outcome of Federal Reserve and Bank of England meetings this week, which are expected to at least give a nod to further stimulus.

The Reserve Bank of Australia on Tuesday cut interest rates to near zero and boosted its bond-buying program, adding to the tidal wave of cheap money flooding the global financial system.

This surfeit of liquidity has been a boon for gold, which is tightly limited in supply. The yellow metal ran into profit taking on Wednesday and dipped to $1,902 an ounce , but stayed comfortably above last week’s trough of $1,858.

Oil prices also pared their early gains as the election outcome turned murky. [O/R]

U.S. crude were up 42 cents at $38.08, with Brent crude futures last at $39.71.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor


Next Story
Loading...