Positive economic news could affect the outcome of the November 6 elections while easing pressure for more monetary easing, pushing up Treasury yields and lifting the dollar.
"Market impact from the U.S. jobs data may in the end be offset by the outcome of the presidential election," said Daiwa's Yamamoto.
A rise in equities in the wake of a solid jobs report may be countered if President Barack Obama wins, as his re-election will be perceived as negative for equities, while weakness in stocks due to a soft data could be recovered if Republican Mitt Romney wins, as markets see him as stock-friendly, Yamamoto said.
"Asian economic indicators are consistent with a risk-on strategy, but we remain risk selective," said Morgan Stanley in a research note.
"The outcome of the U.S. presidential election is a close call, leaving markets concerned about whether the newly elected president will have the political capability to deal with the fiscal cliff," undermining the recent economic rebound, it said.
After the U.S. election, Congress must deal with a "fiscal cliff" - up to $600 billion in expiring tax cuts and spending reductions that are set to kick in next year - which threatens to hurt the U.S. economy.
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