Asian shares and U.S. futures rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect.
Strong Chinese trade data released over the weekend also helped. Many in the region expect trade tensions to de-escalate under a Biden presidency, a plus for Asian markets and economies.
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Asian shares and U.S. futures rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect.
As votes gradually were counted in the closely watched U.S. presidential election, Biden crossed the winning threshold of 270 Electoral College votes with a win in Pennsylvania.
If Congress is split between a Democratic controlled House and a Republican-controlled Senate, it might be difficult for Biden to raise taxes. That remains to be seen, with two run-off votes in the state of Georgia remaining. Currently, the two parties each hold 48 seats in the 100-seat Senate.
Wall Street finished last week on a mixed note although the election results were still undecided. The S&P 500 inched lower 0.1% to 3,509.44, leaving its blockbuster gain for the week at 7.3%. The Dow Jones Industrial Average slipped 0.2%, to 28,323.40. The Nasdaq composite edged less than 0.1% higher, to 11,895.23.
In energy trading, U.S. benchmark crude gained $1.01 to $38.15 a barrel in electronic trading on the New York Mercantile Exchange. It fell $1.65 on Friday to $37.14 per barrel. Brent crude, the international standard, rose $1.03 to $40.48 a barrel.
A currency trader watches computer monitors at the foreign exchange dealing room in Seoul, South Korea, Monday, Nov. 9, 2020. Asian shares rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect. (AP PhotoLee Jin-man)
A currency trader works near the screens showing the foreign exchange rate between U.S. dollar and South Korean won, top, at the foreign exchange dealing room in Seoul, South Korea, Monday, Nov. 9, 2020. (AP PhotoLee Jin-man)
Men look at an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Monday, Nov. 9, 2020. Asian shares rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect. (AP PhotoEugene Hoshiko)
Money traders of a foreign exchange dealing company work in Tokyo, Monday, Nov. 9, 2020, a day after President-elect Joe Biden's victory in the 2020 U.S. Presidential election. (AP PhotoKoji Sasahara)
Japan's Nikkei 225 surged 1.9% to 24,794.44. Australia's S&P/ASX 200 added 1.6% to 6,291.10. South Korea's Kospi added 1.1% to 2,444.13. Hong Kong's Hang Seng rose 1.3% to 26,037.96, while the Shanghai Composite gained 1.2% to 3,350.34.
People walk past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Monday, Nov. 9, 2020. Asian shares rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect. (AP PhotoVincent Yu)
As votes gradually were counted in the closely watched U.S. presidential election, Biden crossed the winning threshold of 270 Electoral College votes with a win in Pennsylvania.
However, President Donald Trump’s refusal to concede and threats of legal action remain a cause for uncertainty
“Asia markets can be seen cheering the elimination of some of the uncertainties with the U.S. presidential election outcome wait put to an end," said Jingyi Pan, senior market strategist at IG in Singapore.
People walk past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Monday, Nov. 9, 2020. Asian shares rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect. (AP PhotoVincent Yu)
If Congress is split between a Democratic controlled House and a Republican-controlled Senate, it might be difficult for Biden to raise taxes. That remains to be seen, with two run-off votes in the state of Georgia remaining. Currently, the two parties each hold 48 seats in the 100-seat Senate.
A divided legislature also is expected to temper any pushback against deregulation, prolonging Trump's relatively business-friendly policies.
Customs data released Saturday showed China’s export growth accelerated in October, boosting the total so far this year back above pre-coronavirus levels for the first time. Exports in October rose 11.4% over a year earlier to $237.2 billion, up from September’s 9.9% gain, while imports rose 4.7% by value to $178.7 billion, decelerating from the previous month’s 13.2% surge.
A currency trader walks near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room in Seoul, South Korea, Monday, Nov. 9, 2020. Asian shares rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect. (AP PhotoLee Jin-man)
Wall Street finished last week on a mixed note although the election results were still undecided. The S&P 500 inched lower 0.1% to 3,509.44, leaving its blockbuster gain for the week at 7.3%. The Dow Jones Industrial Average slipped 0.2%, to 28,323.40. The Nasdaq composite edged less than 0.1% higher, to 11,895.23.
Analysts are cautioning that more volatility may lie ahead.
Biden has vowed to move decisively to try to counter the worsening coronavirus pandemic, that has sapped economic growth, trade and travel, as the U.S. and Europe face a troubling rise in infections. Even if the strictest lockdowns don’t return in the United States, the worsening pandemic may dampen consumption and erase profits.
A woman stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Monday, Nov. 9, 2020. Asian shares rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect. (AP PhotoEugene Hoshiko)
In energy trading, U.S. benchmark crude gained $1.01 to $38.15 a barrel in electronic trading on the New York Mercantile Exchange. It fell $1.65 on Friday to $37.14 per barrel. Brent crude, the international standard, rose $1.03 to $40.48 a barrel.
The dollar inched down to 103.33 Japanese yen from 103.35 yen late Friday. The euro cost $1.1892, up from $1.1875.
A currency trader stands near the screens showing the Korea Composite Stock Price Index (KOSPI), center, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room in Seoul, South Korea, Monday, Nov. 9, 2020. Asian shares rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect. (AP PhotoLee Jin-man)
A currency trader watches computer monitors at the foreign exchange dealing room in Seoul, South Korea, Monday, Nov. 9, 2020. Asian shares rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect. (AP PhotoLee Jin-man)
A currency trader works near the screens showing the foreign exchange rate between U.S. dollar and South Korean won, top, at the foreign exchange dealing room in Seoul, South Korea, Monday, Nov. 9, 2020. (AP PhotoLee Jin-man)
Men look at an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Monday, Nov. 9, 2020. Asian shares rose Monday on relief the U.S. presidential election results were finally decided, with Joe Biden the president-elect. (AP PhotoEugene Hoshiko)
Money traders of a foreign exchange dealing company work in Tokyo, Monday, Nov. 9, 2020, a day after President-elect Joe Biden's victory in the 2020 U.S. Presidential election. (AP PhotoKoji Sasahara)