Stocks Led Higher by Tech, Bonds Rally on Election Nailbiter

SYDNEY, Nov 4 Reuters Share markets veered higher in wild Asian trading on Wednesday as results from the U.S. presidential election proved far closer than polls had predicted, leaving the outcome deeply in doubt.

Investors had initially wagered that a possible Democratic sweep by Joe Biden could ease political risk while promising a huge boost to fiscal stimulus.

But the mood quickly changed on signs President Donald Trump could well snatch Florida and was much closer in other major battleground states than polls had predicted.

U.S. equity futures went on a wild ride, rising then falling, only to climb again as the voting seemed to favour Trump. 

Dealers said investors could be thinking a status quo result would at least lessen political uncertainty and remove the risk a Biden administration would roll back corporate tax cuts.

The technology sector seemed encouraged, with NASDAQ futures rising 3.6, while EMini futures for the SP 500 swung 1.4 higher. EUROSTOXX 50 futures also turned 0.6 firmer, and FTSE futures gained 0.7.

Andrew Brenner, head of international fixed income at NatAlliance Securities, said the move in techs looked like it was a play on the Senate potentially staying Republican.

Brenner said that under a Biden win tech stocks were seen faring worse, partly due to Democrats going after the sector in hearings and also that a potential rise in capital gains tax would hit tech stocks harder.

Japans Nikkei was ahead by 2, while MSCIs broadest index of…

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