Asian markets climb as US parties on course to split House, Senate

November 7, 2018: Asian markets rose Wednesday as investors tracked results from the US midterm elections with pollsters tipping Congress to be split, in line with forecasts.

Republicans held their majority in the Senate but the Democrats were on course to regain control of the House, which could impact Donald Trump's legislative agenda.

“Equities remain supported suggesting this outcome is positive for risk since the gridlock outcome ultimately will support the president's mandate and a higher probability of more fiscal stimulus,” said Stephen Innes, head of Asia-Pacific trading at OANDA.

“Realistically I can't see how the Democrats would want to be perceived as killjoys and try to stifle any policy which is supporting the economy,” he added.

The vote has the added twist of a probe looking at whether Trump's campaign colluded with Russia to win the 2016 election.

If the Democrats win one house of congress, it would likely lead to extensive investigation of Trump's administration, creating new roadblocks for his agenda.

Hong Kong jumped more than one percent going into the break while Shanghai was up 0.3 percent and Tokyo added 0.7 percent.

Sydney added 0.2 percent, with Singapore and Seoul each 0.5 percent up. There were also gains in Taipei and Wellington but Manila and Jakarta were down.

On currency markets the dollar dipped against its major peers as well as higher-yielding and emerging market units, as a win for Republicans in both houses of Congress would likely have led to more tax cuts and regulatory measures.

(APP)

Posted on: 2018-11-07T14:15:00+05:00

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