ASIA-PAC MARKET WRAP: Asia traded cautious as Democrats took control of the House and Republicans retained the Senate as expected

Asian equity markets traded cautious as all focus centred on the US mid-term election results in which the Democrats took control of the House and Republicans retained the Senate which was the consensus heading into the election. A strong start for the Democrats weighed on US equity futures in early trade, although stock futures then recovered after further results and projections trickled in which suggested the unlikelihood of a Blue Tsunami (Democrat-controlled House and Senate) as the Republicans won in key Senate battlegrounds such as Indiana and tightly-contested Texas. As such, there was a non-committal tone in most Asia bourses with ASX 200 (+0.4%) and Shanghai Comp. (-0.4%) rangebound, while Nikkei 225 (+0.4%) was bolstered by recent favourable currency moves and the Hang Seng (-0.1%) briefly outperformed amid a tech-led surge, before slipping into the red. Finally, price action in 10yr JGBs reflected the non-committal risk tone as participants second-guessed the election results and amid jittery trade in T-notes.

(Newswires)