By Hideyuki Sano
TOKYO (Reuters) - Asian shares ticked up in early Tuesday trade, supported by Wall Street gains although sentiment was tempered ahead of the U.S. midterm elections, the first major electoral test of President Donald Trump's big tax cuts and hostile trade policies.
In oil markets, crude prices wobbled near multi-month lows after the United States granted eight countries temporary waivers allowing them to continue buying oil from Iran as Washington formally imposed punitive sanctions on the Islamic republic.
Bucking broader gains, the Nasdaq Composite <.IXIC> fell 0.38 percent as Apple Inc
While political gridlock between the White House and Congress could hinder Trump's pro-business agenda and raise political instability, including hearings centring on the administration, some analysts say such an outcome may have already been priced in by investors.
If the Republicans retain their House majority, global stocks are likely to rally on hopes of more tax cuts.
Trump said last month his administration planned to produce a resolution calling for a 10 percent tax cut for middle-income households.
"Everyone still remembers strong equity rallies after Trump was elected two years ago. So initially stock markets will gain," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
"But further tax cuts would boost already large fiscal deficits and push the 10-year U.S. Treasuries yield above its October high almost instantly. Given rises in U.S. bond yields triggered a correction in equities last month, any rally in stocks is unlikely to last long," he added.
Many investors also expect Trump to continue to take a hard line on trade, regardless of the outcome of the elections.
Major currencies, moves were modest.
The euro traded at $1.1410
The British pound
(Reporting by Hideyuki Sano; Editing by Sam Holmes)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)