SYDNEY, Australia – Asian markets rallied strongly on Thursday, joining global counterparts in welcoming the outcome of the U.S. midterm elections.
Stocks have risen around the world since it was learned the Democrats had re-claimed the House of Representatives after eight years, while the Republicans retained and extended its control of the Senate. Both the Democrats and President Trump were claiming victory on Wednesday, which saw Wall Street, and European markets cheer the result.
On Thursday investors were back in business, with the uncertainty of recent weeks out of the way.
In Australia, the All Ordinaries bounced above the crucial 6,000 barrier, adding 30.90 points or 0.52% to close at 6,012.90.
In Tokyo, the Nikkei 225 jumped 401.2 points or 1.82% to close Thursday at 22,486.92.
In China, the Shanghai Composite was down a touch, losing 5.71 points or 0.22% to 2,635.63.
In Hong Kong, in late afternoon trading Thursday the Hang Seng was 126.85 points or 0.49% stronger at 26,274.54.
The U.S. dollar clawed back some lost ground in the Asian trading session on Thursday, however the Australian and New Zealand dollars continued to pound the U.S. unit.
In early European trading on Thursday the euro had contracted to 1.1430.
The British pound remained well bid at 1.3126.
The Japanese yen was a touch weaker at 113.61.
The Swiss franc eased back to 1.0061 while the Canadian dollar was little changed at 1.3111.
The Australian rose to 0.7291, while its counterpart in New Zealand strengthen to 0.6794.
Wall Street overnight gave its nod of approval to the outcome of the midterm elections by sending stocks sharply higher.
Technology stocks led the way with strong performances in the health sector as well.
Congress will be divided for the remaining two years of the Trump term with the Democrats in control of the House of Representatives, and Mr Trump’s party, the Republicans, retaining control of the Senate.
“I don’t think any of Trump’s agenda that he’s already accomplished gets unwound. That was the main point of concern for investors,” Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas was quoted by the Reuters Thomson news agency as saying. “We’ve got a relief rally because the market got exactly what it expected.”
At the close of trading Wednesday, the Dow Jones industrials were up 545.29 points or 2.13% at 26,180.30.
The Standard and Poor’s 500 jumped 58.44 points or 2.12% to 2,813.89.
The tech-laden Nasdaq Composite did best of all, rising 194.79 points or 2.64% to 7,570.75.
The Federal Reserve assembled for its two-day monetary policy meeting, which commenced on Wednesday, but there is no rate hike expected before next month.