Bisnis.com, Asian stock markets rose higher in morning trade Tuesday (6/11/2018), supported by the strengthening of the US Wall Street (US) despite market sentiment was affected by the mid-week election day in the US.
The MSCI Asia Pacific Index excluding Japan rose by 0.15%, while Japan's Nikkei rose 0.5%, the day after both fell more than 1%.
On Wall Street, the S & P 500 ended 0.56% on Monday (5/11), supported by the financial sector with Berkshire Hath shares, up 5% on strong financial performance.
In the oil market, crude oil prices moved near their lowest level in several months. The US government provides temporary relief to eight countries, allowing them to continue to buy oil from Iran after the United States imposed official sanctions on Iran.
On the other hand, the Nasdaq index fell by 0.38% after Apple shares, down 2.8% following the Nikkei report that a tech giant said the smartphone assembler to stop plans for additional production lines dedicated to the iPhone XR.
In anticipation of Tuesday's US election, investors generally expect the Democratic Party to take control of the House of Representatives, while the Republican Trump is expected to continue to dominate the Senate.
Although political congestion between the White House and Congress could damage Trump's business agenda and increase political instability, including central discussions in the government, some analysts say such results have been taken into account by investors.
If the Republican camp maintains their majority in DPR, world stock exchanges are likely to rally driven by hopes of further cuts by the US government.
Last month, Trump said his government plans to produce a resolution calling for a 10% tax cut for middle-income households.
"Everyone remembers the powerful rally after choosing Trump [sebagai Presiden AS] two years ago. So, initially the stock market will rise, "said Norihiro Fujito, head of investment strategy at Mitsubishi UFJ Morgan Stanley Securities.
"But further cuts in taxes will increase the already large fiscal deficit and bring the 10-year US bond back to near its high level in October almost immediately.In light of the rise in yields on US bonds that triggered a correction last month, Rabbi, "he added.
Many investors also expect Trump to continue to take a strong stand on trade issues, regardless of midterm election results.