Asian stocks mixed in the run up to US midterm elections
- Stocks in Japan, South Korea, and Australia are reporting gains, while the Chinese markets are on the back foot.
- Global stocks may turn risk-averse if Democrats take control of both House and the Senate.
The Asian stock markets are lacking consensus ahead of the US midterm elections.
At press time, Japan's Nikkei is up 1.17 percent. Stocks in Australia and New Zealand are also flashing green. The Greater China markets, however, are looking in the other direction. For instance, the Shanghai Composite index is down 1 percent and Hong Kong's has so far shed 0.20 percent.
The US midterm elections that are scheduled for Tuesday, could send ripples through global markets if Democrats gain control of both chambers.
This is because the Democrats are widely expected to use the majority to pursue investigations into Trump's Russian ties, Russian meddling in the US elections and Trump's financial affairs, leading to a political turmoil in Washington.
On the other hand, stocks, treasury yields, and the US dollar may rise if the Republicans retain the majority in both Chambers.
Markets, though, are anticipating a split Congress.
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
