Stock indexes in Australia, Hong Kong, Singapore and Indonesia paused from their record-breaking runs, while Japan's Nikkei 225 Index also fell as the focus shifted to gains in the yen and what the possible negative effects on exporters such as Canon Inc. may be.

The Japanese currency strengthened slightly against the U.S. dollar throughout Asian trading as reports trickled in that Democrats were headed for a majority in the House of Representatives, although analysts were reluctant to make any direct linkage between political events in the U.S. and foreign-exchange markets.

Analysts said, however, that a change in House leadership raised questions about the future of U.S. trade relations with Asia -- and with China in particular -- as issues from currency exchange rates to the trade deficit were likely to come under closer scrutiny.

"I expect there will be a low rumbling on the trade deficit and the yuan, but the likelihood of there being anything serious in terms of protectionism, at least at the moment, appears pretty limited," said Stephen Green, senior economist with Standard Chartered Bank in Shanghai.

"The Democrats have certainly moved away from the Clinton agenda, which was promoting free trade," Green added. "There is more data coming out now that the current free-trade system is hurting not just the bottom-income groups in the U.S. but is beginning to cause very low real wage growth in professions such as accounting and information technology."

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S&P 500 futures fell 5.10 points at 1,383.90 and Nasdaq 100 futures shed 6.75 points at 1,745.00. Dow industrial futures slumped 25 points to 12,163.

Markets weren't as bullish on Wednesday. Though markets had largely expected the Democrats to take control of the House, the Democrats weren't widely expected to take over the Senate. The Democrats could take control if they win in Montana and Virginia, two races that still haven't been declared.

"The Democrats are known to be less business friendly than the Republicans and there will be less decision making coming out of the U.S. government for the next two years. It's that simple," said Geoff Langham, head of trading for CMC Markets in London.

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