Stocks in Asia, Europe surge on Biden election win, yuan extends strongest level since June 2018

Hang Seng Index gained 1.2 per cent to a four-month high, while stocks in Europe and US are also cheering Biden’s victory

Shanghai Composite Index rose to a two-month high, yuan reaches the strongest since June 2018

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Stock futures indicate the rally in Asian markets will extend into European and US markets after Joe Biden won the US presidential election. Photo: Reuters

Published: 10:30am, 9 Nov 2020Updated: 9:48pm, 9 Nov 2020

Hong Kong and mainland China stocks surged along with equities in Asia-Pacific markets while the Chinese yuan added to its strongest level since June 2018, after US media declared Democrat candidate Joe Biden the US presidential election winner over the weekend.

The Hang Seng Index rose 1.2 per cent to 26,016.17, its highest level since July 9. The Shanghai Composite Index closed at a two-month high after adding 1.9 per cent. The yuan appreciated 0.6 per cent to 6.5734 per dollar, a level not seen since late June 2018.

Bulls also waded into European stock markets. Major benchmarks surged on a wave of optimism over Biden’s victory and news that drugmakers Pfizer and BioNTech were making good progress with their Covid-19 vaccine.

The FTSE 100 in London vaulted more than 5.6 per cent, while Germany’s DAX jumped 5.6 per cent and France’s CAC 40 climbed more than 7.3 per cent.

Futures on American benchmarks soared, signalling US equity traders will also be cheering the president-elect.

Dow futures were last up 1,272 points, or about 4.5 per cent, while S&P 500 futures climbed 3.5 per cent and Nasdaq futures were up 1.5 per cent.