Global stock markets climb on prospect of Biden presidency

Global stock markets climb on prospect of Biden presidency
An electronic screen showing stock market information in Tokyo. Source: Getty Images
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Daily US Times: Shares in Asia Pacific’s stock markets have climbed to their highest point for nearly three years as Democratic candidate in the US Joe Biden edged closer to becoming the next president of the country.

As Mr Biden sought the remaining six electoral college votes he needs for victory, investors Asia were betting that he would seal the presidency and end uncertainty over the outcome of the election in the world’s biggest economy. Situation in the US has big impact on global stock markets.

Shares of MSCI’s broadest index of Asia-Pacific (excluding Japan) climbed 1.3% to reach its highest since February, 2018. South Korea put on 1.5% and Japan’s Nikkei rose 1.1% to a nine-month top.

Australia’s ASX200 was also up more than 1%.

Chinese blue chips gained 0.8%, aided by talk that a Biden administration might reverse some of Donald Trump’s trade war tariffs.

On Thursday morning, the FTSE100 was expected to lift modestly, while futures trade pointed to a similar 0.1% rise in the US benchmark S&P 500 index when trading resumes on Wall Street later on Thursday.

dward Moya of OANDA, said: “The contest is not over, and President Trump will not go down without a fight, but financial markets are confident to price in a Biden presidency along with a Republican-controlled Senate.”

But although Joe Biden, the former Vice President, appeared increasingly likely to win, the prospects of the Democrats taking the Senate, the upper chamber of the Congress, dimmed and some observers suggested that he would be hamstrung by the Republican majority in the Senate.

Analysts at Nomura wrote in a note: “A Biden win without full Senate support means less risk of regulation and higher corporate/personal taxes.”

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