Australia, NZ shares jump as markets cheer Biden win
09/11/2020 05:38
* ASX 200 benchmark index hits highest level in over 8
months
* Aus tech stocks hit a record high
* NZ cenbank seen holding cash rate at 0.25% - Reuters Poll
(Updates to close)
By Deepali Saxena
Nov 9 (Reuters) - Australia shares finished higher on
Monday, after notching their best intraday session since early
March, as investors expect the election win for U.S.
President-elect Joe Biden to usher in a calmer period of global
trade.
A result that would likely leave Republicans still in
control of the Senate would also mean legislative gridlock,
which could hurt the Democratic agenda of introducing higher
corporate taxes and tough financial regulations, analysts said.
With all the major indices trading in the green, the S&P/ASX
200 benchmark index .AXJO rose for a third session to close
1.8% higher.
"Having a Biden presidency probably takes away some of the
potential flare-ups in terms of global trade," said James Tao,
market analyst at CommSec.
"This will mean there's less disruption to taxes and tax
reform. That's certainly something businesses have been rallying
on," he added.
"In terms of relationship with U.S., Australia has always
had a very strong relationship so, there's unlikely to be any
major changes. But you could say there's certainly no downside
to it for sure."
In the home front, Australian mining stocks .AXMM were the
biggest gainers, recording their best session since June 16 as
iron ore futures surged nearly 5%. IRONORE/
Global mining giants BHP BHP.AX and Rio Tinto RIO.AX
climbed over 3% each.
The tech sub-index .AXIJ rallied 2.8% to hit a record high
with buy-now-pay-later firm Afterpay APT.AX adding as much as
4.5%.
A Biden victory would likely lead to an increase in domestic
production of metals used to make electric vehicles, solar
panels and other products crucial to his climate plan.
Lifting risk appetite further were comments from the New
South Wales state that said it would shift towards renewable
energy and aimed to lure A$32 billion ($23.35 billion) of
private investment into the sector in the next decade.
urn:newsml:reuters.com:*:nL1N2HV01E
Renewable energy stocks such as Genex Power GNX.AX and
Hazer Group HZR.AX ended in the positive territory.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50
index .NZ50 ended 1.8% firmer after scaling a record high
during the session.
According to a Reuters poll, the central bank is seen
holding the official cash rate at 0.25% at a monetary policy
meeting on Wednesday. urn:newsml:reuters.com:*:nL1N2HV01J
($1 = 1.3704 Australian dollars)
(Reporting by Deepali Saxena, Editing by Sherry Jacob-Phillips)
((Deepali.Saxena@thomsonreuters.com; Twitter:
@deepalisaxenas;))
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