Markets around the world shimmied Tuesday night, with early vote tallies in the U.S. elections setting off swings in currencies, Treasurys and gold.

The dollar climbed against the Mexican peso on initial favorable results for Republican Donald Trump in Florida, but then the peso rallied back as numbers swung in favor of Democrat Hillary Clinton.

Similarly, the Japanese yen strengthened and gold rallied, as early polling results showed a slight edge for Mr. Trump in Florida. But those gains were quickly pared on fresher voting figures favoring Mrs. Clinton.

The yield on the benchmark 10-year Treasury note fell to as low as 1.846% during Tuesday evening trading but recently rose to 1.891%. That was up from 1.867% during regular hour trading Tuesday, the highest close level since May. Yields move opposite to bond prices, which would be expected to rise on a Trump victory.

The seesaw trading across markets could continue for some time until more clarity emerges.

Many investors view Mrs. Clinton as the "status quo" presidential candidate, whose policies are unlikely to inject much volatility into markets. Meanwhile, analysts say uncertainty surrounding Mr. Trump's policy proposals could hurt the dollar and other risk-sensitive currencies such as the Mexican peso. Similarly, investors believe a win by Mr. Trump would boost prices for gold and the Japanese yen, popular safe-haven assets.

"If Trump wins...there will be more market volatility and more action," said Nizam Idris, head of strategy for fixed income and currencies at Macquarie Bank Ltd. in Singapore. Giventhe recent rallies in U.S. stocks and the Mexican peso, "the market is positioned for a Clinton win."

In recent days, risky assets such as stocks have risen as Hillary Clinton pulled ahead in polls and sold off as the race tightened. On Monday, the S&P 500 snapped its longest losing streak in nearly 36 years with a 2.2% gain, its biggest jump since March. The S&P gained 0.4% on Tuesday.

Many investors said they were cautious heading into Tuesday evening, with some citing the selloff in the days immediately after the U.K.'s surprise vote to exit the European Union.

Saumya Vaishampayan contributed to this article.

Write to Ira Iosebashvili at ira.iosebashvili@wsj.com and Min Zeng at min.zeng@wsj.com

(END) Dow Jones Newswires

November 08, 2016 20:45 ET (01:45 GMT)

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