Asian shares mixed as investors await the outcome of the US presidential election

Investors around the world are closely following the US election for clues about who will be the next president of the world’s largest economy.

Benchmark stock indexes across Asia were mostly higher on Wednesday, while the US dollar also rose.

The outcome of the election is expected to have a major impact on the global economy, particularly Asia.

It is uncertain whether the result of the election will be known during Asian opening hours, as counts in swing states can take days to complete.

In Japan, the benchmark Nikkei 225 share index rose 2%, while Australia’s ASX 200 was about 1% higher.

In mainland China, the Shanghai Composite Index was flat, while Hong Kong’s Hang Seng fell about 2.5%.

Futures trading on the major US stock indexes pointed significantly higher. That came after the Dow Jones Industrial Average, S&P 500 and Nasdaq all closed more than 1% higher.

The world’s biggest cryptocurrency, Bitcoin, jumped to a record high of more than $75,000 (£58,145).

The US dollar rose more than 1% against a basket of other major currencies including the euro, pound and Japanese yen.

Donald Trump has said he will dramatically increase trade tariffs, particularly on China, if he becomes the next US president.

“Trump’s global trade policies are causing particular anxiety in Asia because of the strong protectionist platform on which more aggressive tariffs on US imports have been promised,” said Katrina Ell, director of economic research at Moody’s Analytics.

The former president’s more isolationist stance on foreign policy has also raised questions about his willingness to defend Taiwan against potential aggression from China.

The self-governing island is a major producer of computer chips, which are vital to the technology that powers the global economy.

Meanwhile, Trump’s tax cut agenda has also been widely welcomed by major American companies.

“If Trump is elected, we should see pro-business policies and tax cuts, which in turn could possibly drive up inflation and fewer rate cuts,” said Jun Bei Liu, portfolio manager at Tribeca Investment Partners.

If Kamala Harris wins, investors expect her trade and foreign policy to be a continuation of Joe Biden’s more predictable approach.

“Harris’ platform largely assumes the status quo on global trade flows and tariffs,” Ms Ell said.

A potential Harris administration is also seen as more likely to tighten regulations on industries such as banking and health care.

The Democratic Party’s renewable energy policies could also boost electric car companies and solar companies.

Investors also have other key issues to focus on this week.

On Thursday, the US Federal Reserve will announce its latest decision on interest rates.

Comments from the head of the central bank, Jerome Powell, will be followed closely around the world.

On Friday, top Chinese officials are expected to unveil more details about Beijing’s plans to tackle the slowdown in the world’s second-largest economy.