· Asia shares near three-year high, bonds see boon in U.S. stalemate
Asian shares climbed on Thursday and bonds extended their blistering rally as investors wagered the prospect of U.S. policy gridlock would greatly favour some industries while also restraining government borrowing.
The risk of a prolonged contested election did remain, though the count was progressing in an orderly fashion with Democratic challenger Joe Biden narrowly ahead in key states.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.7% to reach its highest since February 2018. Japan’s Nikkei rose 1.1% to a nine-month top and South Korea put on 1.7%.
· Nikkei hits over 2-year high on Wall Street boost, focus on final U.S. election tally
Japanese shares ended at a more than two-year high on Thursday, buoyed by overnight Wall Street gains, while focus remained on final tally for the U.S. presidential election after several state results gave a narrow lead to Democrat Joe Biden and a likelihood of divided Congress.
The benchmark Nikkei share average rose 1.73% to close at 24,105.28, its highest since Oct. 3, 2018. The broader Topix gained 1.39% to 1,649.9.
Biden predicted a U.S. election win over President Donald Trump after pivotal victories in Michigan and Wisconsin, but the risk of a prolonged contested election remains as Trump’s campaign moved to file lawsuits and request for a recount in many states.
Analysts said stocks were supported by overnight Wall Street gains as the likelihood of gridlock in Congress made investors optimistic that major policy changes would be difficult to enact.
· China shares end higher as Biden win odds improve
China shares ended higher on Thursday as U.S. election results showed a firming lead for Democratic challenger Joe Biden, who is seen as favouring a less confrontational approach than President Donald Trump in Sino-U.S. relations.
With financial markets braced for days or even weeks of uncertainty as Trump has opened a multi-pronged attack on vote counts in several states by pursuing lawsuits and a recount, investors have welcomed any indication of a clear winner.
At the close, the Shanghai Composite index was up 1.3% at 3,320.13.
The blue-chip CSI300 index gained 1.48%, led by the consumer staples sector, which added 1.61%.
· European markets open higher amid U.S. election uncertainty
European stocks opened higher Thursday as election uncertainty continues in the U.S.
The pan-European Stoxx 600 climbed 0.8% in early trade, with tech stocks adding 2.2% to lead gains as all sectors and major bourses entered positive territory.
The U.S. election remains the key focus for international investors on Thursday. U.S. stock index futures were higher in early morning trading as investors hoped that the winner of the U.S. presidential election would soon be determined.
Reference: Reuters, CNBC
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