Stocks rose and the dollar rallied against its major rivals on Monday after the FBI said it stood by its earlier recommendation that no criminal charges were warranted against Democrat Hillary Clinton.
The news boosted U.S. S&P 500 Index futures 1.2 percent, a gain that is likely to snap the nine-day losing streak in the U.S. stock index - its longest in more than 35 years and propelled Asian shares higher in opening trades.
Stock markets in Asia also opened up with MSCI's broadest index of Asia-Pacific shares outside Japan advancing 0.3 percent. Australian shares were up 0.7 percent and Japanese shares rose 1.2 percent.
The biggest winner was the Mexican peso, which has acted as something of a bellwether of sentiment as Republican Donald Trump's proposed policies are considered to be deeply negative for the country. It rose to a 1-1/2 week high earlier.
"This will surely boost the chance of Clinton"s victory. Barring another unexpected scandal on her side, it looks likely that she will win the race," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.
"Given that the market had been slipping for nine days, there will be short-covering."
Investors had been unnerved by signs of a tightening presidential race between Democrat Hillary Clinton and Trump, whose stance on foreign policy, trade and immigration has rippled through financial markets.
Clinton is seen as a candidate of the status quo and her policies are viewed as more predictable than her Republican rival, a political novice.
The FBI said on Sunday it stood by its earlier finding that no criminal charges were warranted against Clinton for using a private email server for government work, lifting a cloud over her presidential campaign two days before the U.S. election.
Still, despite a boost to Clinton's prospects in Tuesday's vote, investors are unlikely to make big bets given Trump's gains in polls recently may not be entirely due to the FBI probe.
Markets are also expecting a Federal Reserve rate increase next month after a government report on Friday showed solid jobs gains and a rise in wages in October.
Indeed, despite the early bounce in risky assets, the market undertone was noticeably cautious before the outcome with a key gauge for market volatility, the popular VIX index at its highest levels in nearly six months.
Elsewhere, Hong Kong stocks are likely to be under pressure after authorities unveiled a fresh round of policy tightening measures on rising property prices.
In the currency market, the dollar rose as much as 0.9 percent against the yen and last stood at 104.02 yen, while the euro dropped 0.4 percent to US$1.1015.
The standout was the Mexican peso, rallying 1.7 percent to 18.69 to the dollar, hitting its highest level since Oct 26.
Another notable outperformer in early Asian trades was the Australian dollar which jumped nearly 1 percent against the Japanese yen.
"The dollar is being bought back on lessened prospects of a Trump presidency. But so far it is not active buying, as Clinton is likely to maintain a policy that prevents a strong dollar if she is elected, and as economic prospects remain unclear," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.
Bond price retreated with both U.S. and Japanese bond futures falling as risk appetite surged across the board. U.S. 10-year Treasury futures were last down about 0.3 percent Sunday evening in electronic trading.
Gold prices, another safe-haven asset, fell 1 percent to US$1291.16 per ounce.
Reuters
Mon Nov 07 2016
Investors look at computer screens showing stock information at a brokerage house in Shanghai, China, April 21, 2016. - Reuters
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.