Dollar falters, stocks tick up as markets gird for US election showdown

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He once oversaw the all-star recording of 'We Are The World', the 1985 charity record for famine relief in Africa.

SINGAPORE: Financial markets began the week on a cautious note, though moves in currencies stole the spotlight on Monday ahead of a busy week headlined by the U.S. presidential race which is set to come down to the wire.

Trading was thinned in Asia with Japan out for a holiday, but much of the early action was in currencies amid a broad fall in the U.S. dollar.The Australian dollar rose 0.76%, while China's yuan gained 0.46% in the onshore market. "At the start of last week, we were pricing about a 48% chance of a red sweep... that's fallen to around 36% this morning according to Polymarket. So, there's been a significant easing around the probability of a Republican sweep... the Democrats have certainly closed the gap," said Tony Sycamore, a market analyst at IG.

Cash trading of U.S. Treasuries was closed in Asia due to the Japan holiday, but futures rallied 10 ticks. Chinese stocks got off to a positive start on Monday, with the CSI300 blue-chip index gaining 0.87%, while the Shanghai Composite Index advanced 0.7%.Reuters reported that the country is considering approving the issuance of over 10 trillion yuan in extra debt in the next few years to revive its fragile economy at the meeting, a fiscal package which is expected to be further bolstered if Trump wins the election.

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