Nikkei 225 surged 1.8%, the TOPIX index gained 1.4%, ASX 200 added 1%, while KOSPI rose 0.1%
Most Asian stocks advanced on Wednesday, tracking overnight strength in Wall Street, while Chinese markets were volatile as early vote counting showed Donald Trump leading in the 2024 presidential elections.
Regional markets tracked an overnight rally on Wall Street, as heavyweight technology stocks rebounded from recent losses, as investors also positioned for a widely expected interest rate cut by the Fed this week.
U.S. stock index futures gained in Asian trade.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes gave away early gains to trade in a flat-to-low range. Hong Kong’s Hang Seng index lagged, slipping 2.2%.
Trump has vowed to impose steep trade tariffs on China. The country’s markets are also expected to see increased losses in the event of a Trump victory.
Focus this week was also on a meeting of the Standing Committee of China’s National People’s Congress (NPC).
The NPC is widely expected to outline plans for more fiscal spending, with analysts expecting at least 10 trillion yuan ($1.4 trillion) in new spending over the coming years.
Plans for more fiscal spending come after a slew of monetary stimulus over the past two years yielded few results.
Nikkei 225 was the best performer in Asia on Wednesday, surging 1.8%, while the TOPIX index gained 1.4%.
Gains in Japan were driven chiefly by export-oriented stocks, as the yen softened sharply against the dollar as investors braced for the results of the U.S. election.
Stronger technology stocks also bolstered the Nikkei.
Purchasing managers’ index (PMI) data offered some positive cues, as data on the services sector showed a smaller decline than initially expected through October.
Wider Asian markets were mostly positive, with focus turning to the results of the U.S. elections. Investors were hoping for a quick conclusion to the election, which is expected to clear out a major point of uncertainty for markets.
Australia’s ASX 200 added 1%, while South Korea’s KOSPI rose 0.1%.
