After this week’s US elections, Wall Street rose, followed by a mixed trend in Asian stock markets.
Tokyo and Sydney advanced while Shanghai and Hong Kong declined. Seoul kept swinging between profit and loss.
Markets are placing bets on control of the US Congress, which is divided between Republicans and Democrats, which could mean lower taxes and milder regulation that investors prefer to stay in place.
On Wall Street, the benchmark S&P 500 index closed up 1.9%. It is heading towards its biggest weekly gain since April.
In a report, Craig Erlam of Onda said, “I find it remarkable how relaxed these markets are.” “Hopefully, trust investors have shown, rewarded, because the last thing we need is already a hostile and divisive election.”
The Shanghai Composite Index was down 0.5% to 3,302.02 while the Nikkei 225 in Tokyo rose 1.1% to 24,367.35. Hang Seng closed 0.3% to 25,617.47 in Hong Kong.
Copy in Seoul was down 0.1% in the mid-morning of 2,415.67. The S&P-ASX 200 advanced 0.9% to 6,193.20 in Sydney.
New Zealand and Jakarta gained while Singapore declined.
On Wall Street, the S&P 500 peaked at 3,510.45. The Dow Jones Industrial Average rose from 1.9% to 28,390.18. The Nasdaq Composite climbed 2.6% to 11,890.93.
In the US presidential election, challenger Joe Biden leads the vote count, but President Donald Trump and his supporters are questioning the validity of the votes of important states that are still counting ballots.
“Markets are still betting on clear election results (possibly Biden),” Mizo Bank said in a report.
Analysts warn that an extended court battle with no clear winner could increase uncertainty, which dislikes the market and drags the stock down.
Also, on Thursday, the U.S. The Federal Reserve said its key interest rate would be left at a record low near zero. This confirmed his readiness to do more to support an economy threatened by a worsening coronavirus epidemic.
Technology stocks helped power the rally. Expecting that Republicans could occupy the Senate, reducing investor concerns that Democratic-controlled Washington would implement anti-monopoly laws and move more aggressively after Big Tech.
Apple climbed 3.5%, Microsoft rose 3.2%, and Amazon added 2.5%. Facebook grew by 2.5% and Google’s parent company by 1%. They are also the five largest stocks of the S&P 500 by market value.
About 82% of the stock closed higher at the S&P 500. Qualcomm posted the biggest gain of 12.7% after analysts reported strong revenue and profit in the latest quarter.
In energy markets, benchmark US crude on the New York Mercantile Exchange fell from 71 cents per dollar to $ 38.08 per barrel. The contract fell 36 cents to $ 38.79 on Thursday. Internationally, Brent crude fell 71 cents to $ 40.22 a barrel in London. It shed 30 cents at $ 30.93 last season.
The dollar rose to 103.53 yen from Thursday’s 103.51. The euro was down from $ 1.1838 to $ 1.1824.