* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Nikkei off highest since Feb, S&P futures whipsawed
* Dollar pares losses, 10-yr Treasury yields fall from 5-mth
high
* Oil, commodities still up on hopes for U.S. fiscal
stimulus
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Wayne Cole
SYDNEY, Nov 4 (Reuters) - Asian share markets turned
skittish on Wednesday, paring early gains as results from the
U.S. Presidential election showed an agonisingly close race with
no clear winner yet in sight.
Investors had initially wagered that a possible Democratic
sweep by Joe Biden could ease political risk while promising a
huge boost to fiscal stimulus, hitting the safe-haven dollar and
bonds.
But the mood sobered on signs President Donald Trump might
snatch Florida and was closer in other major battleground states
than polls had predicted.
"In typical election risk-driven fashion it's been the
stairs up and express elevator down as early results, especially
out of Florida, are pointing away from the quick Biden outcome
markets were looking for," said Stephen Innes, Chief Global
Markets Strategist at Axi.
"Markets have taken a step back from the Democratic sweep
scenario."
Instead, investors were now hedging against the risk of a
contested election or at least a drawn-out process as mail-in
ballots were counted.
That saw 10-year Treasury yields drop all the way back to
0.85% US10YT=RR , from a five-month top of 0.93%.
E-Mini futures for the S&P 500 ESc1 veered wildly between
negative and positive and were last up 0.3%. Japan's Nikkei
.N225 was still ahead by 1.7%, but MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS went flat.
The U.S. dollar likewise reversed early losses and gained
0.46% on a basket of currencies to 93.561 =USD . The euro eased
back to $1.1698 EUR= from a top of $1.1768.
Investors are still awaiting the outcome of Federal Reserve
and Bank of England meetings this week, which are expected to at
least give a nod to further stimulus.
The Reserve Bank of Australia on Tuesday cut interest rates
to near zero and boosted its bond-buying program, adding to the
tidal wave of cheap money flooding the global financial system.
This surfeit of liquidity has been a boon for gold, which is
tightly limited in supply. The yellow metal ran into profit
taking on Wednesday and dipped to $1,902 an ounce XAU= , but
stayed comfortably above last week's trough of $1,858.
Oil prices also pared their early gains as the election
outcome turned murky. O/R
U.S. crude CLc1 were up 54 cents at $38.20, with Brent
crude LCOc1 futures gaining 46 cents to $40.17.
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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
Key emerging currencies being split by U.S. election https://tmsnrt.rs/326Toa7
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