Asian stocks pop after US stocks cheer midterm elections Express News
Overnight on Wall Street, the Dow Jones Industrial Average jumped more than 545 points to close at 26,180.30 while the S&P 500 gained around 2.12 percent to finish the trading day at 2,813.89. The Nasdaq Composite also advanced 2.64 percent at about 7,570.75.
The major averages had earlier hit their session highs after U.S. President Donald Trump indicated he is willing to work with Democrats on policy initiatives that would help the economy keep growing.
Democrats won control of the House of Representatives while Republicans retained their hold on the Senate, as the U.S. midterm election’s outcome split Congress.
Investors expect Trump’s pro-business policies to continue, while some expressed optimism about Congress providing a larger check on Trump’s more disruptive market actions. Historically, equity markets see strong returns when Congress is divided.
“With trade tensions to the fore over recent months and risk currencies in the spotlight, the US Mid-Terms were being seen through the prism of whether the outcome might embolden the President to go harder on trade or in effect if the elections would clip his wings,” David de Garis, a director and senior economist at National Australia Bank, said in a morning note.
“With the Democrats gaining control over the House, the latter scenario now might be a little more likely,” de Garis said.