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November 05 from 2020 – 07: 22
Asian stocks and currencies rise as Biden approaches the White House
Stocks and currencies in Asia’s emerging markets firmed across the board Thursday as Democrat Joe Biden beat Republican rival Donald Trump and was a surprising distance from securing a nail-biting US presidential election.
Overall, Biden is seen to be less combative in trade policy and in dealing with the region’s growth engine, China, and investors hope that could pave the way for Asia’s stronger recovery from the crisis. the coronavirus attract more investment.
However, in the short term, analysts said that a pullback in the dollar was the biggest driver for the region’s currencies, with the Indonesian rupiah and the Taiwan dollar rising 1% and 1.5% respectively.
China’s yuan was slightly higher, while the South Korean won, like Taiwan, highly sensitive to any easing of tensions in global trade relations, gained around 0.6%.
Elsewhere in major emerging markets, the Mexican peso and the Brazilian real, among the losers during Trump’s time in the White House, rose overnight.
“A Biden victory is unlikely to result in a major shift in US foreign policy in the short term, which is why the direction of the dollar is more important, with a weaker dollar supporting more stocks in Asia and the US. emerging markets, “said Andrew Gillan, Head of Asia ex Japan Stocks, said Janus Henderson Investors, Singapore. Biden late Wednesday predicted victory over Trump after pivotal victories in Michigan and Wisconsin, while the Republican incumbent sought to offset a narrow path to reelection with demands and demands for a recount.
Gambling sites, often closely watched by financial market players, are now leaning heavily toward Biden, though investors remain concerned about the possibility of weeks of court battles that will delay any additional fiscal support for a struggling US economy. the new coronavirus.
-Reuters
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