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Asian stocks have been mixed on Wednesday as investors anxiously awaited results of US runoff elections that would determine the legislative balance of power in the world’s largest economy.

Georgia Senate race with 40% of expected vote in 

Ossoff (D) 55.1% Vs Perdue (R) 44.9% – Warnock (D) 55.7% Vs Loeffler (R) 44.3%

Meanwhile, Fox News say a cal is imminent for a Democratic Party sweep.

Market implications

This tense runoff election in the state of Georgia will decide whether President-Elect Joe Biden will have the majority in the Senate he needs to support his agenda or if he will face gridlock in the early stages of his term.

A victory will potentially be an upset for stocks, on one hand, considering the corporate tax implications, but on the other hand, balanced by high levels of fiscal stimulus that would otherwise be blocked by the Republicans. 

The US dollar would therefore be expected to be in supply.