SINGAPORE — Stocks in Japan were set to trade higher at the Wednesday open as investors in Asia-Pacific wait for the result of the U.S. presidential election between incumbent Donald Trump and former Vice President Joe Biden.
Futures pointed to a higher open for Japanese stocks, with the Nikkei futures contract in Chicago at 23,890 while its counterpart in Osaka was at 23,410. That compared against the Nikkei 225’s last close at 23,295.48. The Bank of Japan is expected to release its monetary policy meeting minutes at around 7:50 a.m. HK/SIN.
Meanwhile, shares in Australia rose in morning trade, as the S&P/ASX 200 gained around 0.1%.
On the economic data front, Australia’s retail sales for September is set to be released at around 8:30 a.m. HK/SIN on Wednesday.
Ahead of that data release, the Australian dollar changed hands at $0.7191, after yesterday’s spike from below $0.708.
Later in the day, a private survey of China’s service sector activity for October is set to be released, with the Caixin/Markit services Purchasing Managers’ Index expected at around 9:45 a.m. HK/SIN.
U.S. election watch
Investor focus on Wednesday will likely be on the U.S. election.
“We consider the election result is very uncertain despite former Vice President Biden’s large lead in the national polls,” Joseph Capurso, head of international economics at Commonwealth Bank of Australia, wrote in a note. “The uncertainty about the outcome of the election and the risk of an inconclusive result on the day can lift currency volatility.”
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.346 following levels above 94 seen earlier this week.
The Japanese yen, often seen as a safe-haven currency, traded at 104.58 per dollar after strengthening from levels around 104.7 against the greenback yesterday.
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Overnight stateside, the Dow Jones Industrial Average closed 554.98 points higher at 27,480.03. The S&P 500 rose 1.8% to finish its trading day at 3,369.16 while the Nasdaq Composite jumped 1.9% to close at 11,160.57. It was the second-best presidential Election Day performance for the S&P 500.
Here’s a look at what’s on tap:
- Japan: Bank of Japan’s monetary policy meeting minutes at 7:50 a.m. HK/SIN
- Australia: Retail sales data for September at 8:30 a.m. HK/SIN
- China: Caixin/Markit services Purchasing Managers’ Index at 9:45 a.m. HK/SIN
— CNBC’s Arjun Kharpal contributed to this report.
Source: CNBC