Asian Shares Rally On Biden’s Election Win

Asian stocks rallied on Monday after Democratic candidate Joe Biden was projected to defeat incumbent Donald Trump, helping remove some U.S. political uncertainty.

A divided government with a Biden presidency and Republican-controlled Senate seemed like it could be good for both the stock market and the world’s largest economy.

Chinese shares rallied on hopes of a thaw in the frosty Sino-American trade relations. The benchmark Shanghai Composite Index soared 61.57 points, or 1.9 percent, to 3,373.73, while Hong Kong’s Hang Seng Index rose 1.2 percent to 26,016.17.

Japanese shares hit a 29-year high, with upbeat earnings from Honda Motor and Biden’s projected victory helping underpin investor sentiment.

The Nikkei 225 Index spiked 514.61 points, or 2.1 percent, to 24,839.84, its highest close since November 1991. The broader Topix closed 1.4 percent higher at 1,681.90, a level last seen in late February.

Honda Motor shares soared 9.4 percent after the carmaker posted strong quarterly earnings and upwardly revised its earnings outlook.

Toyota Motor rose 2.2 percent to extend gains, while Mazda Motor lost 2.9 percent on disappointing earnings. Japan Airlines plunged 11 percent after unveiling a share sale plan.

Australian markets hit an eight-month high as Biden’s apparent win buoyed demand for riskier assets. The benchmark S&P/ASX 200 Index jumped 108.60 points, or 1.8 percent, to 6,298.80, while the broader All Ordinaries Index surged up 120.70 points, or 1.9 percent, to 6,515.70.

Miners BHP, Fortescue Metals Group and Rio Tinto jumped 3-6 percent on a weaker dollar. Lithium miners Pilbara Minerals and Galaxy Resources soared 10-11 percent. Tech stocks also gained ground, with buy-now-pay-later heavyweight Afterpay rising 4 percent.

Online real estate advertising firm REA Group rallied 9.1 percent on brokerage upgrades after the online real estate advertising firm issued a positive first-quarter update last week.

On the economic front, the total number of building permits issued in Australia in September rose a seasonally adjusted 15.4 percent month-on-month, official data showed. Permits for private sector houses rose 9.7 percent, while permits for private sector dwellings excluding houses spiked 23.4 percent.

Seoul stocks posted strong gains to hit a more than two-year high as investors remained focused on what a Biden victory will mean for the global economy. The benchmark Kospi jumped 30.70 points, or 1.3 percent, to 2,447.20, extending gains for the sixth straight day.

Tech, renewable energy and battery suppliers paced the gainers, with rechargeable battery maker Samsung SDI soaring 6.8 percent.

New Zealand shares extended gains for the fifth straight session to reach a record high. The benchmark NZX-50 Index surged 225.18 points, or 1.8 percent, to 12,562.20 and the kiwi dollar hit an 18-month high in the wake of the U.S. election result.

Synlait Milk shares soared nearly 8 percent before entering a trading halt pending a capital raising. Rival A2 Milk surged 4.3 percent.

U.S. stocks ended narrowly mixed on Friday as investors priced in a Biden presidency and data showed stronger than expected job growth in October.

The Dow Jones Industrial Average edged down 0.2 percent and the S&P 500 slipped marginally as Biden moved closer to securing 270 votes in the Electoral College and Trump claimed the election was being “stolen” from him. The tech-heavy Nasdaq Composite ended flat with a positive bias.

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