# Asia stocks advance as investors await U.S. midterm election results
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-09
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Investors Await U.S. Inflation Data and Midterm Election Results
Meta Description: Stay informed with the latest news on Asian share prices and U.S. midterm election results. Find out how this could impact the markets and investment
URL: https://financedigest.com/asia-stocks-advance-as-investors-await-u-s-midterm-election-resultshtml

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By Ankur Banerjee

SINGAPORE (Reuters) – Asian shares rose and the dollar wobbled on Wednesday as investors awaited U.S. [inflation data](https://www.financedigest.com/dollar-trims-gains-vs-euro-after-u-s-inflation-data.html "Dollar trims gains vs euro after U.S. inflation data") as well as the results of the U.S. midterm elections that could signify a [power shift](https://www.financedigest.com/new-research-from-impact-com-shows-shifting-power-dynamic-that-puts-influencers-at-the-centre-of-the-brand-consumer-relationship.html "New Research from impact.com Shows Shifting Power Dynamic that Puts Influencers at the Centre of the Brand-Consumer Relationship") in Washington.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.45% higher, while Japan’s Nikkei rose 0.2% and Australian [stocks gained](https://www.financedigest.com/stocks-mixed-dollar-gains-after-robust-inflation-jobs-data.html "Stocks mixed, dollar gains after robust inflation, jobs data") 0.70%.

China’s stock market opened flat, with [Hong Kong’s](https://www.financedigest.com/citadel-accelerates-hiring-push-in-hong-kong-and-london.html "Citadel accelerates hiring push in Hong Kong and London") Hang Seng Index 0.12% higher.

China [stocks soared last week on hopes](https://www.financedigest.com/stocks-dollar-gain-on-soft-landing-hopes.html "Stocks, dollar gain on soft landing hopes") that authorities in the country would relax their zero-COVID policy, but rising COVID-19 cases have tempered expectations.

Despite all the positive talk about slowly unwinding zero-Covid and experimenting with bigger events, it looks as if more [lockdowns might be on their way,”](https://www.financedigest.com/in-shanghai-lockdown-blues-make-way-for-covid-testing-gripes.html "In Shanghai, lockdown blues make way for COVID testing gripes") ING regional head of research Robert Carnell said.

Meanwhile, China’s factory gate prices for October dropped for the first [time since](https://www.financedigest.com/soccer-arsenal-reach-womens-champions-league-semis-for-first-time-since-2013.html "Soccer-Arsenal reach Women’s Champions League semis for first time since 2013") December 2020, underlining faltering domestic demand and disruption to production amid strict COVID-19 measures and a sluggish property sector.

On Tuesday, all three major U.S. stock indexes notched their third straight session in the green.

Results of the U.S. midterm elections will decide whether the Democrats lose or retain congressional control halfway through President Joe Biden’s term, with [investors expecting](https://www.financedigest.com/wave-of-lawsuits-over-ftx-expected-but-investors-will-face-legal-hurdles.html "‘Wave’ of lawsuits over FTX expected, but investors will face legal hurdles") Republican gains.

[Republicans are widely favoured to pick up the five seats they need to control the House](https://www.financedigest.com/analysis-u-s-regulators-could-be-pressured-by-slim-republican-house-control.html "Analysis-U.S. regulators could be pressured by slim Republican House control"), but control of the Senate could come down to tight races in several states.

A split Congress would diminish the outlook for fiscal support measures, leading to [investors to expect the Fed](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues") to sooner become less aggressive in raising interest rates, strategists at Saxo Markets wrote. They added that such an outcome could spark an equities [rally and would likely put downward pressure on the dollar](https://www.financedigest.com/dollar-jumps-u-s-stocks-buck-global-rally.html "Dollar jumps, U.S. stocks buck global rally").

Historically, stocks have tended to do better under a split government when a Democrat is in the White House, with [investors attributing some of that performance to political gridlock that prevents either side from making major policy changes](https://www.financedigest.com/bayer-hits-8-month-high-as-investors-welcome-ceo-change.html "Bayer hits 8-month high as investors welcome CEO change").

Initial [results showed that several](https://www.financedigest.com/severe-april-storms-result-in-2bn-hit-to-us-economy-according-to-aon-catastrophe-report.html "Severe April storms result in bn hit to US economy, according to Aon catastrophe report") Republican senators had easily won re-election but the final outcome probably will not be known any time soon.

In the crypto world, bitcoin fell nearly 1% on Wednesday after sliding 10% following crypto exchange Binance’s [announcement](https://www.financedigest.com/gumgum-announces-industrys-first-100-brand-safe-ad-exchange.html "GumGum Announces Industry’s First 100% Brand Safe Ad Exchange") that it had signed a nonbinding agreement on Tuesday to acquire rival exchange FTX in the face of an apparent liquidity crunch.

U.S [inflation data](https://www.financedigest.com/shares-steady-dollar-gains-ahead-of-u-s-inflation-data.html "Shares steady, dollar gains ahead of U.S. inflation data") scheduled for release on Thursday will also be on investors’ mind, with economists forecasting a decline in both the monthly and yearly core numbers to 0.5% and 6.5%, respectively.

[Fed funds futures have priced in a 67% chance of a 50-basis-point rate](https://www.financedigest.com/fed-rates-up-boe-up-ecb-up-stocks-up.html "Fed rates up, BoE up, ECB up, stocks up") hike in December, and a 33% probability of a 75-basis-point increase.

In the currency market, the U.S. dollar has been under downward pressure from bets on the Federal Reserve easing back on interest rate [rises and on China](https://www.financedigest.com/oil-rises-about-2-with-u-s-and-china-inflation-in-focus.html "Oil rises about 2% with U.S. and China inflation in focus") reopening and driving growth.

The [dollar last traded at $1.1006 per euro](https://www.financedigest.com/dollar-slips-yuan-gains-on-china-pmi-hot-inflation-lifts-euro.html "Dollar slips, yuan gains on China PMI; hot inflation lifts euro") and bought 145.20 yen. \[/FRX\]

[Oil prices](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") were mostly unchanged in early trade on Wednesday, after sliding 3% in the previous session on demand worries.

U.S. crude recently fell 0.01% to $88.90 per barrel and Brent was at $95.40, up 0.04% on the day. \[O/R\]

(Reporting by Ankur Banerjee; Editing by Bradley Perrett)


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