ASIAN STOCKS RISE ON HOPES OF LESS US BUSINESS REGULATION
Asian shares jumped on Thursday as investors cheered US election results that pointed to a government less likely to impose tough financial regulations, while sterling fell on reports that the Bank of England may ease policy more than expected.
The gains tracked those on Wall Street overnight, when financial markets mostly shrugged off the uncertainty that came with a nail-bitingly close contest between President Donald Trump and his Democratic rival Joe Biden, Reuters reported.
Indeed, investors looked past Trump’s pursuit of lawsuits and a vote recount that would prolong the election, and focused instead on the performance of Democrats, which was not as strong as some polls had predicted. They said this indicated that a progressive agenda, which includes higher taxes, is off the cards even if Biden wins. “Markets appear to be trading on the expectation of a financially-restrained Biden Presidency with taxes, regulation and massive stimulus all less likely,” analysts at Australia’s ANZ Bank said in a note.
E-Mini futures for the S&P 500 added 0.27%, Japan's Nikkei climbed 0.3%, Australian shares rose 0.5%, while MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3% in early trade. But in a sign that not all investors were sanguine about the election uncertainty, Treasury yields drifted lower as some sought safety. The 10-year Treasury yield languished at 0.7713%, a long way away from a five-month high of 0.945% struck on Tuesday.