Japanese markets are in particular focus as votes are counted in the US, given their size and liquidity, and the heavy focus on the dollar-yen currency pair during Asian trading hours.
Japan’s blue-chip stock gauge rallied more than 3% while the yen slid to the weakest since July as early results of the US presidential election led some traders to wager that Donald Trump has an edge over Kamala Harris.
Investors see the yen as likely to extend its drop on a Trump victory because his economic policy is seen as more expansionary and inflationary than that of Harris, making it less likely for the Federal Reserve to aggressively cut interest rates.
