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TOKYO: Asian stocks and American futures rose on Monday (November 9) with relief that the results of the US presidential election were finally decided, with Joe Biden as president-elect.
Strong Chinese trade data released over the weekend also helped. Many in the region expect trade tensions to ease under Biden’s presidency, a boon for Asian markets and economies.
READ: Biden’s victory opens the door to better predictability in China-U.S. Relations: Chinese state media
The MSCI World Stock Index, which tracks stocks in 49 countries, rose 0.5 percent to a record in Europe’s early hours. On Friday, it posted its biggest gain in a week in nearly seven months.
E-mini futures for the S&P 500 rose more than 1.4 percent on Monday. Nasdaq futures rose more than 2 percent to just under an all-time high, signaling a positive start for US markets.
MSCI’s broader Asia Pacific equity index outside of Japan rose 1.3% after reaching its highest level since January 2018. The pan-European STOXX 600 rose 1.5% to a month-long high at 8.46am. am (GMT).
Japan’s Nikkei 225 was up 2.12%, Australia’s S & P / ASX 200 added 1.75%, South Korea’s Kospi added 1.27%, Hong Kong’s Hang Seng was up 1 , 18%, while the Shanghai Composite gained 1.86%. The Singapore Straits Times Index rose 1.19 percent.
“Why the excitement? Hopes of less diplomatic and commercial distress, a lower dollar helps global rebalancing,” Chris Bailey, European strategist at Raymond James in London, said in a note. “Much hope … but more than two months to the opening day!”
Oil prices surged on Monday as investors welcomed the prospect of a Biden win, ignoring concerns about lackluster demand amid mounting cases of global coronavirus. Oil prices rose more than 2 percent, and Brent futures topped $ 40 a barrel.
Analysts said the outlook could get tougher from here as investors focus on Biden’s ability to expand fiscal stimulus and measures to reduce the spread of COVID-19.
As votes were gradually counted in the closely watched US presidential election, Biden crossed the Electoral College’s 270-vote winning threshold with a victory in Pennsylvania.
However, President Donald Trump’s refusal to concede and threats of legal action remain a source of uncertainty.
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“Asian markets can be seen cheering for the removal of some of the uncertainties with the end of waiting for the results of the US presidential elections,” said Jingyi Pan, senior market strategist at IG in Singapore.
If Congress is torn between a Democratic-controlled House and a Republican-controlled Senate, it could be difficult for Biden to raise taxes. That remains to be seen, with two runoff votes remaining in the state of Georgia. Currently, the two parties each have 48 seats in the 100-seat Senate.
A divided legislature is also expected to moderate any pushback against deregulation, prolonging Trump’s relatively business-friendly policies.
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Customs data released Saturday showed that China’s export growth accelerated in October, pushing the total so far this year above pre-coronavirus levels for the first time.
Exports in October rose 11.4 percent from the previous year to $ 237.2 billion, down from a 9.9 percent increase in September, while imports increased 4.7 percent in value to $ 178.7 billion. of dollars, slowing the increase of 13.2 percent the previous month.
