Global Stocks Gained as Joe Biden Inches Closer to the White House

Global stocks responded positively to Joe Biden likely presidency and they have been expanding their gains since the former Vice President established his lead in the race to the White House.

Shares in the Asia Pacific rose to their highest point in almost three years. The MSCI index that measures Asia-Pacific shares, excluding Japan, gained 1.3 percent to reach its highest since February 2018.

While the Japanese Nikkei has gained 1.1 percent to a nine-month high. South Korea and Australia’s indexes added 1.5 percent and 1 percent gains, respectively.

Similarly, Chinese blue chips appreciated by 0.8 percent as talks of Biden making adjustments to some of Trump’s trade dispute with China gained traction.

U.K FTSE 100 and S&P 500 index also expanded their gains on Friday.

“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,” said Edward Moya of OANDA.

Experts said while Biden seems to be the likely winner, the possibility of the Democrats taking the Senate is unlikely. Therefore, some have suggested that he would be hamstrung by the Republican majority in the upper house.

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

“Market reaction over the past 24 hours confirms this view, with the US10-year yields declining sharply, and US growth stocks outperforming on prospects of less economic aid.”