Stock markets skydive as Trump takes the lead

 
Stock markets skydive as Trump takes the lead
As coming president Donald Trump takes the lead in several polls after leaked WikiLeaks Emails and continued FBI investigation of rival Hillary Clinton, stock markets - or the very rich - are getting very worried.

Asian shares tumbled to seven-week lows and the dollar was on the defensive on Wednesday as investors were rattled by signs the U.S. presidential election race was tightening just days out to the Nov. 8 vote, reports Reuters.

Markets were beginning to rethink their long-held bets of a victory for Democratic candidate Hillary Clinton amid signs her Republican rival Donald Trump could be closing the gap, forcing money out of riskier assets and into safe-havens such as the Japanese yen and gold.

Heavy selling also knocked the Mexican peso MXN=D2, seen as the most vulnerable to a Trump presidency due to his pledge to build a wall along the U.S. border with Mexico to prevent entry of illegal immigrants.

The peso, which posted its biggest fall in two months on Tuesday, extended losses to 19.308 to the dollar, its lowest level since early October.

Investor anxiety has deepened in recent session over a possible Trump victory given uncertainty on the Republican candidate's stance on several issues including foreign policy, trade relations and immigrants, while Clinton is viewed as a candidate of the status quo.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 1.2 percent to seven-week lows while Japan's Nikkei .N225 fell 1.5 percent. U.S. stock futures shed 0.4 percent in Asia, edging near four-month low touched on Tuesday.

"It's becoming all about the U.S. elections. Markets are trying to factor in the changing atmosphere," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

The tumultuous presidential race appeared to tighten after news that the Federal Bureau of Investigation was reviewing more emails as part of a probe into Clinton's use of a private email server.

While Clinton mysteriously held a five-percentage-point lead over Trump, according to a Reuters/Ipsos opinion poll released on Monday, some other polls showed her Republican rival ahead by 1-2 percentage points.

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