Global Stocks Rise as Investors Await US Presidential Election Outcome

Stocks around the world rose as investors closely monitored the US presidential election, awaiting the results that could shape the global economy.

In Asia, major stock indexes saw gains on Wednesday, with the Nikkei 225 in Japan up by 2% and Australia's ASX 200 rising 1%. However, China’s Shanghai Composite Index remained flat, while Hong Kong's Hang Seng fell by 2.5%. US stock futures pointed to further gains following a strong close in major US indices—Dow Jones, S&P 500, and Nasdaq, all up by over 1%.

Global stocks rise as investors await US election results and key economic updates.

The US dollar also saw an uptick, climbing more than 1% against key currencies such as the euro, pound, and Japanese yen. Meanwhile, Bitcoin surged to a record high, crossing $75,000.

With the election outcome uncertain, especially in key swing states where counting may extend for days, the results are poised to influence the global market, particularly in Asia.

Donald Trump's potential return to office raises concerns about global trade, particularly regarding his stance on increasing tariffs, particularly on China. Analysts warn of economic tensions, with Asia worried about his protectionist policies and more isolationist foreign policies, especially regarding Taiwan, a critical player in global tech supply chains. Trump's proposed tax cuts could benefit US companies but may lead to higher inflation.

In contrast, Kamala Harris’s potential presidency is expected to maintain the status quo in global trade, with policies similar to those of Joe Biden. Investors anticipate a continuation of current foreign relations and trade flows, though stricter regulations on industries like banking and healthcare may follow. Harris’s support for renewable energy is likely to boost electric vehicle and solar companies.

Additionally, investors are focused on key events this week, including the US Federal Reserve’s upcoming interest rate decision and a major announcement from China’s leadership on strategies to address its economic slowdown.