Asian Stocks Warm to Obama Re-election
Markets warmed to the re-election of Barack Obama as U.S. President, with most Asian stocks inching higher after earlier losses. Marketswere volatile throughout the morning Asian trading session as results begin indicating Mr. Obama had won a second term, beating Republican challenger Mitt Romney in most of the tossup states, including the most coveted, Ohio. With the presidential race out of the way, investors will next focus on the forthcoming U.S. fiscal cliff, a wrenching set of decisions over tax and spending issues. The re-election of President Obama was seen as better for bonds, as a second term could extend Ben Bernanke's tenure at the Federal Reserve and a continuation of monetary easing, which drives Treasury purchases.
Meanwhile, a mild relief in stocks suggests that investors are happy to no longer face uncertainty over who will lead the world's largest economy. Many markets spent much of the early session in negative territory, but pickedup slightly after the results were called.
Meanwhile in Asia, there's also some lingering political uncertainty as China will start its Party Congress this week, where it is expected to unveil a new generation of leaders. China also scheduled to release reports on inflation, retail sales and industrial production on Nov. 9 and trade data due on Nov. 10. The Hong Kong HangSeng Index rose 155.42 points, or 0.71% to close at 22,099.85 while the Singapore’s Straits Times Index added 23.94 points, or 0.79% to 3,043.27.
by TA Securities