Hong Kong (AFP) – Asian equities rose in early business Wednesday as early US presidential election results trickled in, with initial bets going on a win for market-favourite Hillary Clinton.
Investors across the planet have grown increasingly confident the former secretary of state will win the knife-edge vote over firebrand tycoon Donald Trump.
The gains follow last week’s sell-off caused by the FBI’s announcement it was again investigating Clinton’s use of private emails. That was reversed this week when the Bureau said its decision not to prosecute her had not changed.
However, there remains unease with Trump having rallied from a double-digit deficit in some polls to within striking distance of Clinton, while analysts drew parallels with Britain’s shock EU exit vote.
“Volumes are eerily low in the local markets this morning, which means a lot of investors are still sitting on the sidelines waiting for further confirmation of the outcome of the US election,” Gary Huxtable, client adviser at Atlantic Pacific Securities, said in a note.
Clinton is considered by many investors to be a safer bet than Trump, who is seen as a loose cannon with policies many fear could wreck the world’s top economy.
In early trade Tokyo was up 0.7 percent, Sydney added 0.6 percent and Seoul was 0.3 percent higher, while Wellington also gained 0.3 percent. Other key markets were yet to open.
The dollar managed to hold on to the previous day’s gains against the safe-haven yen as investors become more confident in buying higher-yielding, riskier units.
The Mexican peso — which was battered by Trump’s anti-immigrant rhetoric earlier in the campaign — was up more than 1.0 percent at 18.4240.