· World stocks eye record levels as Washington gridlock curbs policy risks
Global stocks eyed an all-time peak while the dollar and U.S. bond yields stayed sluggish on Friday on hopes that a divided U.S. legislature would hinder large government borrowing, which could pave the way for even more central bank stimulus.
A sense that a Biden presidency will be more predictable than Trump’s is also underpinning risk sentiment, even though investors saw no quick rapprochement between Washington and Beijing on trade and other issues.
Stocks in Asia-Pacific were mixed on Friday as investors continued to wait for a result from the U.S. election.
Mainland Chinese stocks were lower by their close, with the Shanghai composite down 0.24% to about 3,312.16 while the Shenzhen component shed 0.402% to around 13,838.42. Hong Kong’s Hang Seng index slipped0.14%, as of its final hour of trading.
MSCI’s all-country index of the world’s 49 markets inched up 0.05%, bringing its record peak hit in September within sight.
Japan’s Nikkei average rose 0.9% at 24,325.23 to a 29-year high while the Topix index added 0.52% to finish its trading day at 1,658.49.
South Korea’s Kospi edged 0.11% higher to close at 2,416.50.
MSCI’s broadest gauge of Asian Pacific shares outside Japan rose 0.3% near 3-year high.
U.S. S&P futures dropped 0.7% on profit-taking, a day after the underlying stock index rose 1.95%.
Stocks in Australia advanced on the day, with the S&P/ASX 200 up 0.82% to 6,190.20.
· Nikkei closes at near 3-decade high as Biden edges closer to win
Japan’s Nikkei index on Friday ended at its highest level in 29 years, tracking strong moves in global equities, as investors hoped a gridlock in U.S. Congress during a possible Joe Biden presidency would be able to stall major policy changes.
The benchmark Nikkei share average closed 0.91% higher at 24,325.23. It marked the highest closing level since November 1991 when markets were in the midst of a crash after Japan’s bubble economy collapsed.
The broader Topix gained 0.52% to 1,658.49.
· European markets mixed with U.S. election, coronavirus in focus
European markets opened mixed Friday as investors await the outcome of the U.S. election and react to rising coronavirus cases and new restrictions across the continent.
The pan-European Stoxx 600 hovered just above the flatline in early trade, with insurance stocks climbing 1.1% and tech falling 0.5%.
The eyes of the world remain on the counting of ballots in U.S. election, with Democratic candidate Joe Biden closing President Donald Trump’s leads in key swing states of Georgia and Pennsylvania.
Reference: Reuters, CNBC
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