(Updates prices at 0550 GMT)
By Rae Wee
SINGAPORE, July 15 (Reuters) - The dollar rose broadly
on Monday and cryptocurrencies jumped as trades for a victory by
Donald Trump in the upcoming U.S. elections gathered steam in
the wake of an attempted assassination of the former U.S.
President.
Trading was thinned in the Asian session with Japan out for
a holiday, though news of the Trump shooting dominated the
market mood and had investors narrowing the odds of a Trump
victory come November.
The attempted assassination probably enhances Trump's
"reputation for strength", said Jack Ablin, chief investment
officer at Cresset Capital.
Online betting site PredictIT has a Republican win at 66
cents, from 60 cents on Friday, with the Democrats at 38 cents.
The current odds indicate that Republicans are twice as likely
to win the election as Democrats.
That sent the dollar rising broadly, which left the euro
easing 0.14% to $1.0895, while sterling fell
0.09% to $1.2978.
Cash U.S. Treasuries were untraded in Asia on Monday owing
to the Japan holiday, but 10-year Treasury futures edged
lower, indicating yields will rise when cash trading begins
later in the day. Bond yields move inversely to prices.
"The market reaction function to a Trump presidency has been
characterised by a stronger U.S. dollar and a steepening of the
U.S. Treasuries curve, so we might observe some of that this
coming week if his election odds are assessed to have further
improved following this incident," said Rong Ren Goh, a
portfolio manager at Eastspring Investments.
Crypto prices similarly surged in anticipation of a Trump
win, with bitcoin last up 9% at $62,760. Ether
jumped more than 7% to $3,336.80.
Trump has presented himself as a champion for
cryptocurrency, although he has not offered specifics on his
proposed crypto policy.
In other currencies, the Australian dollar eased
0.13% to $0.6775, while the New Zealand dollar slid
0.3% to $0.6100.
The dollar index was little changed at 104.20.
Under a Trump presidency, market analysts expect a more
hawkish trade policy, less regulation and looser climate change
regulations.
Investors also expect an extension of corporate and personal
tax cuts expiring next year, fuelling concerns about rising
budget deficits under Trump.
STILL STRUGGLING
Headlines from China also grabbed investors' attention on
Monday, as data showed the world's second-largest economy grew
much slower than expected in the second quarter, weighed down by
a protracted property downturn and as job insecurity squeezed
domestic demand.
Separate figures released earlier in the day showed China's
new home prices fell at the fastest pace in nine years in June,
with the battered sector struggling to find a bottom despite
government support measures to control oversupply and bolster
confidence.
The Chinese yuan hardly reacted to the data and only
slightly extended its losses from earlier in the session to last
trade 0.13% lower at 7.2602 per dollar in the onshore market
.
"On net, it's a negative outcome. It does show that the
second-quarter growth momentum appears to be weakening," said
Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
"The second-quarter momentum weakening kind of implies that
we'll need more support to get the economy to the 5% target for
the whole year."
China's once-in-five-year gathering of top officials, which
usually ushers in policy changes, kicked off on Monday and the
four-day plenum will be watched for measures to support the
patchy recovery in the world's second-largest economy.
Elsewhere, the yen reversed some of its gains from
late last week and last stood at 157.95 per dollar, though
remained not too far from a roughly one-month high of 157.30 hit
on Friday.
Tokyo was thought to have intervened in the market to prop
up the battered Japanese currency last week in the wake of a
cooler-than-expected U.S. inflation report, with Bank of Japan
data suggesting that authorities may have spent up to 3.57
trillion yen ($22.4 billion) to do so on Thursday.