Updates election results, prices

By Wayne Cole

SYDNEY, Nov 6(Reuters) -U.s. stock futures and the dollar climbed in Asia on Wednesday as early results from the U.S. presidential election suggested the race remained too close to call, leaving investors jumping at shadows.

Republican Donald Trump won eight states while Democrat Kamala Harris captured three and Washington, D.C., Edison Research projected, but critical battleground states were unlikely to be called for hours or even days.

Treasury yields climbed as some betting sites swung to favour Trump, while futures markets were still confident the Federal Reserve will cut interest rates by 25 basis points on Thursday. FEDWATCH

Analysts generally assume Trump's plans for restricted immigration, tax cuts and sweeping tariffs if enacted would put more upward pressure on inflation and bond yields, than Harris' centre-left policies.

Trump's proposals would also tend to push up the dollar while potentially restricting how far the Fed might ultimately be able to cut rates. Reflecting that, Fed fund futures 0#FF: for next year eased into the red with November off 7 ticks.

"As the early results come in, even though none of them are that surprising, we are seeing Treasury yields rising a little bit, the dollar strengthening, bitcoin up; kind of a classic Trump trade," said Brian Jacobsen, chief economist at Annex Wealth Management.

"There's not a lot of conviction in these moves; it seems like these are little pops."

Yields on 10-year Treasury notes US10YT=RR rose to 4.351%, from 4.279%, and nearer a four-month high of 4.388% touched last week. Two-year yields US2YT=RR climbed to 4.241%, from 4.189% late in New York.

"If we look at the long end of the curve, that reflects the fact that both candidates are not exactly fiscal conservatives, they're both willing to use the fiscal printing press," said Arnim Holzer, global macro strategist at Easterly EAB Risk Solutions.

"The biggest issue is if Trump or Harris are going to get full mandates," he added. "If they don't get blue or red sweeps, it limits the fiscal damage, and that's the best outcome for bondholders."

YUAN GIVES GROUND

S&P 500 futures ESc1 gained 0.6% in choppy trading, while Nasdaq futures NQc1 added 0.3%. EUROSTOXX 50 futures STXEc1 firmed 0.2%, while DAX futures FDXc1 tacked on 0.4% and FTSE futures FFIc1 0.3%.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was little changed. Japan's Nikkei .N225 rose 1.2% as the yen slipped, tracking rallies on Wall Street overnight. [.N[]

In currency markets, the dollar index added 0.8% to 104.19 =USD. The euro slipped 0.8% to $1.0834 EUR=EBS, having hit a one-month top of $1.0937 overnight.

The dollar firmed 0.8% to 152.86 yen JPY=EBS, and further away from a low of 151.34. USD/

The dollar gained 0.5% on the offshore yuan CNH= to 7.1375 yuan. China is seen on the front line of tariff risk, and its currency in particular is trading on tenterhooks with implied volatility against the dollar CNHSWO= around record highs.

Chinese stock markets have surged to almost one-month highs as investors expect a meeting of top policymakers in Beijing this week to approve local government debt refinancing and spending. Chinese blue chips .CSI300 dipped 0.2% in early trade on Wednesday.

A firmer dollar combined with higher bond yields left gold prices little changed at $2,744 an ounce XAU= and off a recent record peak of 2,790.15. GOL/

Oil prices were down in early Asia trade as markets nervously waited on the U.S. election results. They had risen overnight as a storm was expected to cut U.S. output in the Gulf of Mexico. O/R

U.S. crude CLc1 lost 23 cents to $71.66 per barrel, while Brent LCOc1 fell 39 cents to $75.14.

Reporting by Wayne Cole; Editing by Shri Navaratnam and Jacqueline Wong

To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: 0#.INDEXA