By Imani Moise
NEW YORK, Jan 5 (Reuters) - Asian stocks were mixed on
Wednesday as investors anxiously awaited results of U.S. runoff
elections that would determine the legislative balance of power
in the world's largest economy while oil prices rose on news of
planned output cuts.
Adding to broader uncertainty in markets was the latest
twist in a regulatory saga over whether the New York Stock
Exchange would delist three Chinese telecom giants on security
grounds. The Shanghai SE Composite Index rose 0.73% on Tuesday after
the NYSE said it would not delist the companies, however, a
person familiar with the matter later said the market operator
would restart delisting plans. In Asia, futures for the S&P 500 EScv1 fell 0.07%,
Australian S&P/ASX 200 .AXJO dipped 0.43% and Japan's Nikkei
225 .N225 inched up 0.1%.
In the United States, the tense runoff elections in the
state of Georgia will decide whether President Elect Joe Biden
will have the majority in the Senate he needs to support his
agenda or if he will face gridlock in the early stages of his
term.
Results are due on Wednesday morning and analysts say Wall
Street is likely set for a rally if Republicans win and a dip if
Democrats gain control. Exit poll data on Tuesday suggested
extremely tight contests. "A market pullback seems both reasonable and healthy. But
stocks won't plunge to zero because there is a countervailing
positive here," said Phil Orlando, Chief Equity Market
Strategist, Federated Hermes of a potential Democratic sweep.
"A Biden honeymoon with Democratic Congress helmed by Nancy
Pelosi and Charles Schumer would likely lead to more fiscal
stimulus and infrastructure spending. That would serve as a
temporary sugar high for stocks in 2021 before the bill comes
due in 2022."
Bucking the trend in Asia, South Korea's main KOSPI .KS11
index surpassed 3,000 for the first time, as investors looked
towards a broad recovery in exports. Wall Street trimmed earlier gains on Tuesday as political
uncertainty and the discovery of a more contagious variant of
the coronavirus in major hubs like New York City tempered
bullishness about the vaccine roll out.
The Dow Jones Industrial Average .DJI rose 0.55%, the S&P
500 .SPX gained 0.71% and the Nasdaq Composite .IXIC added
0.95%.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.06%.
Emerging market stocks rose 1.19%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.04%
higher, while Japan's Nikkei .N225 %.
U.S. crude futures CLc1 climbed 4.9% on Tuesday settling
at $49.93 a barrel after Saudi Arabia pledged additional,
voluntary oil output cuts. Brent crude futures LCOc1 also
jumped 4.9%, settling at $53.60.
The dollar index =USD fell 0.433%, against a basket of
major currencies following China's decision to lift its official
yuan exchange rate by its highest margin since it abandoned a
dollar peg in 2005.
The benchmark U.S. 10-year notes US10YT=RR last fell 12/32
in price to yield 0.9549%, from 0.917% late on Monday.
Bitcoin traded at $34,077.96 BTC=BTSP , up 6.41%.
Spot gold XAU= added 0.4% to $1,949.46 an ounce.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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