Markets weigh winners and losers should Democrats take Senate

FILE PHOTO: A general view of the U.S. Capitol in Washington, U.S. November 10, 2020. REUTERS/Erin Scott

SYDNEY (Reuters) - Asian markets were leaning toward a Democratic win in crucial Senate contests on Wednesday as Treasury yields hit 1% for the first time in 10 months on expectations of more debt-funded spending on COVID-stimulus, infrastructure and renewable energy.

Analysts generally assume a Democrat-controlled Senate would be positive for economic growth globally and thus for most risk assets, but negative for bonds and the dollar as the U.S. budget and trade deficits swell even further.