Asian shares hit 3-week high as U.S. counts votes

By Rafael Nam

HONG KONG (Reuters) - Asian shares Wednesday hit their highest in three weeks as investors welcomed the impending end to the uncertainty around the U.S. presidential election, while resource firms rose on the back of an overnight surge in oil prices.

The dollar recovered after suffering its biggest one-day slide in 13 years Tuesday, as some of the bolder risk-taking that had investors searching for higher yielding currencies abated somewhat in Asian trade.

Votes for the U.S. presidential election were being counted through the Asian morning session, and a conclusion could remove a key uncertainty over who will lead the world's biggest economy amidst the worst financial crisis since the Great Depression.

As a result, U.S. stocks Tuesday enjoyed their biggest election day rally ever, helped as well by the U.S. Treasury Department's plans to expand its capital injection program to include specialty finance firms.

Aggressive rate cuts by central banks worldwide and improvements in the credit markets have given global markets a respite from a thrashing, but investors are still bracing for what could potentially be a steep slowdown in the global economy.

"As the U.S. presidential election comes to an end, many political uncertainties are set to clear and optimism is brewing in markets over the new incoming administration," said Park Hyo-jin, a market analyst at Goodmorning Shinhan Securities.

The MSCI index of Asian stocks outside Japan rose for a seventh consecutive session Wednesday, with its 3.2 percent gain as of 2:20 a.m. British time, placing the index at the highest since October 16.

Tokyo's Nikkei rose 2.8 percent, led by exporters such as Honda Motor Co that were bolstered by a softer yen, while energy-linked firms such as Mitsubishi Corp gained on the oil price rally.