Asian stock markets and dollar rise amid US elections

Investors around the world are closely watching the US presidential election to find out its outcome.

Benchmark stock indexes in Japan and Australia rose in early trade on Wednesday, while the US dollar rose against other major currencies.

The election results are expected to have a major impact on economies across Asia.

It is unclear whether election results will be known during Asian trading hours as votes in swing states could take several days to be counted.

“Markets appear to be in good spirits, even though there are no clear signs yet of who will take the reins in the White House,” said Tim Waterer, chief market analyst at investment firm KCM Trade.

In Japan, the benchmark Nikkei 225 stock index rose about 1% and Australia’s ASX 200 rose 0.8%.

In the US, the Dow Jones Industrial Average, S&P 500 and Nasdaq closed up more than 1% on Tuesday.

“However, we may still see some volatility in the markets today, particularly in the assets most likely to be affected by the outcome, with the US dollar and Chinese equities being prominent examples,” Mr Waterer said.

Donald Trump has said throughout the election campaign that if he becomes the next US president, he will dramatically increase trade tariffs, especially on China.

If Kamala Harris wins, investors expect her trade policies to be a continuation of Joe Biden’s more predictable approach.

Investors also have other key issues to focus on this week.

The US Federal Reserve is due to announce its latest interest rate decision on Thursday.

Central bank governor Jerome Powell’s comments will be closely watched around the world.

Top Chinese officials are expected to provide more details on Friday about Beijing’s plans to address the slowdown in the world’s second-largest economy.