Investing.com — Most Asian stocks advanced Wednesday, following Wall Street’s overnight strength, while Chinese markets were volatile as early vote counts showed Donald Trump leading in the presidential election of 2024.
Regional markets followed an overnight rally on Wall Street as heavyweight technology stocks recovered from recent losses, while investors also positioned for a widely expected rate cut by the Federal Reserve this week.
U.S. stock index futures rose in Asian trading. Associated Press reporting showed Trump had 210 electoral votes, compared to Kamala Harris’ 113 votes, as of 10:48 PM ET (03:48 GMT).
Chinese stocks are skittish while Trump leads
China and the indexes limited early gains to trade in a flat to low range. Hong Kong’s index lagged, falling 2.2%.
Trump has pledged to impose steep trade tariffs on China, heralding greater economic pressure on the country as it already struggles with persistent deflation and a prolonged real estate market slump. Chinese markets are also expected to suffer greater losses in the event of a Trump victory.
The focus this week was also on a meeting of the Standing Committee of the Chinese National People’s Congress, the country’s highest political body.
The NPC is widely expected to outline plans for more budget spending, with analysts expecting at least 10 trillion yuan ($1.4 trillion) in new spending in the coming years.
Plans for more fiscal spending come after a series of monetary stimulus measures over the past two years yielded little results.
Analysts at JPMorgan also said in a recent note that a Trump victory in the 2024 election could allow Beijing to unlock even more fiscal stimulus, as Trump has threatened to impose steep trade tariffs against the country.
Japanese markets are rising while the yen is weakening
Japan was the best performer in Asia on Wednesday, rising 1.8%, while the index added 1.4%.
Gains in Japan were mainly driven by export-oriented stocks, as stocks weakened sharply against the dollar as investors braced for the results of the US election.
Stronger technology stocks also boosted the Nikkei as they followed an overnight rally by their US counterparts.
The Purchasing Managers Index data also provided some positive clues, as the index data through October showed a smaller contraction than initially expected.
Asian stocks optimistic about US elections, Fed meeting in focus
The broader Asian markets were largely positive, with all focus on the US election results. Investors were hoping for a quick outcome to the election, which is expected to remove a key point of uncertainty for markets.
Australia rose 1%, while South Korea added 0.1%.
Futures for the Indian index pointed to a flat opening after the index recovered from a more than four-month low on Tuesday.
The focus this week was also on , with the central bank widely expected to cut rates by 25 basis points.
