hong kong<u+2014>markets in the asia-pacific region are reacting in real time to the results of the u.s. presidential election . havens like the japanese yen, gold bullion and u.s. treasury bonds are in focus, while asia-pacific stock markets are also reacting. the japanese yen tends to rally when markets are volatile , as investors perceive the currency to be safe in times of turmoil. a stronger yen typically signals that the market has become risk averse. when voters in the u.k. elected to leave the european union in june, the yen surged in strength, punching through the 100 level against the u.s. dollar. since then it has retreated, as investors expected more easing from the bank of japan . gold is another haven asset; prices tend to rise when investors expect trouble. the yellow metal is up more than 20% this year, though it has dropped this week as investors have gained confidence in a victory for hillary clinton. asian stock markets have sold off in the past week leading up to the u.s. vote, though they mounted a slight recovery on monday. on the day of the brexit vote, japan<u+2019>s nikkei stock index fell nearly 8%. meanwhile, s&p 500 futures gave an early indication of how u.s. stocks would open on wednesday. the mexican peso has acted as a barometer of the election over the past few months. the currency has tended to drop against the dollar when donald trump has been doing better in the polls, given his desire to exit from the north american free trade agreement if its terms aren<u+2019>t renegotiated. in addition, he has said he wants a wall to be build along the mexico-u. s. border. the peso strengthened by about 2% during each of the first two presidential debates in september and october, as markets picked mrs. clinton as the winner of those contests. the currency was less active during the final debate. the market for u.s. government bonds acts as a crystal ball for monetary policy, which tends to have a major impact on asia-pacific currencies. market attention in asia has been glued to the u.s. federal reserve, which next meets on dec. 14. before the u.s. election, markets had priced in a 76.3% probability that the central bank would raise interest rates by a quarter of a percentage point. volatility after the brexit vote forced the fed to hold off on raising rates, which spurred gains in emerging-market assets. write to gregor stuart hunter at gregor.hunter@wsj.com
election 2016: six markets to watch  - wsj
gregor stuart hunter