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Asian Stocks End Higher As Obama Gets Another Four Years

November 8, 2012 • World News

With US President Barack Obama securing his second term yesterday, the Asian stock indexes ended higher, Marketwatch reported. 

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Hong Kong’s Hang Seng Index and Australia’s S&P/ASX both increased 0.7 percent. South Korea’s Kospi, meanwhile, garnered 0.5 percent.

Little changed, however, was China’s Composite Index, falling 0.01 percent. Japan’s Nikkei Stock Average also traded flat, ending 0.03 percent lower.

Moreover, Singapore’s Straits Times Index rose by 0.7 percent late in trading. The Asia Dow increased 0.9 percent.

Debates over fiscal issues like the expiry of tax concessions are assured a temporary compromise by Obama’s win, according to Citigroup.

“This outcome means that the same players remain in place for the upcoming fiscal-cliff negotiations,” Citi analyst Tina Fordham said in a note. “Watch for statements from leaders of both parties in both houses of Congress, as well as the leaders of the Ways and Means and Finance Committees, as their signals matter most.”

Asian markets seemed to have been relieved to hear the news of Obama’s victory, given that with an incumbent in the White House, US trade and fiscal policies are likely to continue, analysts said.

“Perhaps Asian traders are content to see the Democrats at the helm given [that] stock-market gains have been pretty good under Obama and the threat of economic sanctions by the Republican Party on China could have been a big risk-off event,” said Chris Weston, chief markets strategist at IG Markets.

In Hong Kong, among strong gainers were apparel firm Esprit Holdings Ltd., up 5.5%, property firm New World Development Co. up 3.2%, and Cathay Pacific Airways Ltd. up 1.3%.

Source:
http://www.marketwatch.com

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