Treasuries jump with stocks, dollar amid count: markets wrap

Treasuries jumped, the dollar climbed and US equity futures pushed higher as early tallies suggested the outcome of the American presidential election could be closer than polls had suggested.

Benchmark Treasury yields swung wildly, falling at one point below 0.8% after earlier surpassing 0.9%. The dollar advanced the most since June after erasing losses. S&P 500 futures swung between gains and losses before climbing, while a surge in Nasdaq 100 contracts triggered a brief trading halt. The offshore yuan and Mexican peso retreated and gold fell.

Joe Biden scored initial wins in traditionally Democratic states in the eastern US while President Donald Trump won Republican strongholds in the south and Midwest, according to the Associated Press and networks, with key battlegrounds still to be decided. Trump’s strong showing across places like Florida and Ohio appeared to significantly shrink Biden’s path to victory.

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Elsewhere, Alibaba Group Holding Ltd. tumbled as much as 9.3% in Hong Kong after China halted the initial public offering of Ant Group Co., in which Alibaba owns about a one-third stake. Asian stocks were mixed with Japan outperforming and Australia lagging.

Investors are bracing for the outcome of a divisive election following weeks of speculation that a contested result could roil markets. Heading into Tuesday, polls indicated Biden was ahead of Trump, though the race looked tight in some battleground states.

“Early prospects for a quick resolution to the US election have given way to the reality of an extended process, not only with regards to the White House but also the Senate,” said Ian Lyngen, a strategist at BMO Capital Markets. “Volatile price action can only be expected to persist for the time being, at least until the path forward becomes clearer.”

EIA crude oil inventory report on Wednesday. These are some key events coming up:

• Federal Reserve policy decision on Thursday.
• The key US non-farm payrolls report is due Friday.
• Earnings are due this week from companies including AstraZeneca Plc, Nintendo Co., Macquarie Group Ltd. and Toyota Motor Corp.

These are the main moves in markets:

Stocks

• S&P 500 futures gained 0.9% as of 1:57 p.m. in Tokyo. The index rose 1.8% on Tuesday.
• Nasdaq 100 contracts rose 2.6%.
• Japan’s Topix index advanced 1.4%.
• Hang Seng and Shanghai Composite were little changed.
• South Korea’s Kospi index rose 0.6%.
• Euro Stoxx 50 futures advanced 0.3%.

Currencies

• The Bloomberg Dollar Spot Index rose 0.4%.
• The yen dipped 0.3% to 104.84 per dollar.
• The offshore yuan fell 0.5% to 6.7132 per dollar.
• The euro bought $1.1659, down 0.5%.

Bonds

• The yield on 10-year Treasuries fell to 0.81%.
• Australia’s 10-year yield was at 0.80%.

Commodities

• West Texas Intermediate crude rose 1.9% to $38.37 a barrel.
• Gold was at $1,899.32 an ounce, down 0.5%.