Investing.com– Most Asian stocks advanced on Wednesday, tracking overnight strength in Wall Street as markets awaited the results of a hotly contested U.S. presidential election, while focus was also on more stimulus cues from China.
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 Federal Reserve this week.
U.S. stock index futures rose in Asian trade, with early coverage of the vote count showing Donald Trump in the lead over Kamala Harris.
Chinese stocks rise with NPC meeting in focus
China’s and indexes rose 0.9% and 0.7%, respectively. Hong Kong’s index lagged, losing 1%.
Focus was squarely on a meeting of the Standing Committee of China’s National People’s Congress, the country’s top political body.
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.
China is expected to mobilize more economic support as it grapples with persistent deflation and an extended property market slump. Plans for more fiscal spending come after a slew of monetary stimulus over the past two years yielded few results.
JPMorgan analysts also said in a recent note that a Trump victory in the 2024 election could see Beijing unlock even more fiscal stimulus, given that Trump has threatened to impose steep trade tariffs against the country.
Japanese markets surge as yen weakens
Japan’s was the best performer in Asia on Wednesday, rallying 1.8%, while the index added 1.4%.
Gains in Japan were driven chiefly by export-oriented stocks, as the weakened sharply against the dollar as investors braced for the results of the U.S. election.
Stronger technology stocks also boosted the Nikkei, as they tracked an overnight rally in their U.S. peers.
Purchasing managers index data also offered some positive cues, as data on the showed a smaller contraction than initially expected through October.
Asian stocks upbeat with US elections, Fed meeting in focus
Broader Asian markets were mostly positive, with focus turning squarely 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.
Coverage by the Associated Press showed Trump standing at 178 electoral votes as of 21:33 ET (02:33 GMT), while Harris was at 99 votes. The candidates need to reach 270 electoral votes to secure the presidency.
Australia’s rose 1%, while South Korea’s added 0.1%.
Futures for India’s index pointed to a flat open, after the index rebounded from an over four-month low on Tuesday.
Focus this week was also on a , where the central bank is widely expected to cut interest rates by 25 basis points.