BANGKOK, Nov 9 (Reuters): China, South Korea and Thailand led Asia's trade-reliant stocks and currencies higher on Monday (Nov 9), after Joe Biden clinched the US presidency, boosting risk appetite and hopes of friendlier policy towards the region and Beijing.
The US dollar fell to a 10-week low after enough states were called for Biden over the weekend following days of counting, helping South Korea's won scale a 21-month high and the Singaporean dollar touch its strongest level since the start of the year.
The tighter-than-expected election, which may leave Republicans in control of the Senate, appears to have doused some hopes for a large US fiscal package, potentially putting the emphasis back on monetary stimulus that will keep US bond yields low and spur more investment in higher-yielding emerging markets.
While Biden's line on China is yet to be tested, it also leaves the door open to less combative relations with the region's biggest economy.
China's yuan rose as much as 0.7% to hit a 28-month peak, while Indonesia's rupiah, whose high interest rates make it one of the region's most popular bond markets for foreign investors, gained nearly 1%.
"A Biden administration is seen as likely to take a less directly confrontational approach towards China," said Khoon Goh, head of Asia Research for ANZ.
"The positive risk sentiment in markets should start to see portfolio inflows flooding back into Asia, which is supportive for the region's asset markets."
Yields on Indonesia's 10-year benchmark bonds fell 9.7 basis points to 6.288%, their lowest in almost three years.
Thai shares jumped 2.5% to their highest in seven weeks, while Singapore hovered around July highs.
In Seoul, stocks jumped to their highest levels in more than two years.
Shanghai climbed 1.5% as China's exports grew at the fastest pace in 19 months in October with imports also rising, providing further indications of a robust recovery from the Covid-19 crisis.
Elsewhere in global emerging markets, the Turkish lira jumped over 2% after Finance Minister Berat Albayrak said he would resign for health reasons, the second surprise exit of a top economic policymaker in as many days, setting the stage for a sharp rise in interest rates.
In Asia, stocks in Kuala Lumpur dipped after Malaysia extended a partial lockdown of the capital until early December and ordered more states to enter a four-week lockdown as coronavirus infections hit new highs. - Bloomberg
The US dollar fell to a 10-week low after enough states were called for Biden over the weekend following days of counting, helping South Korea's won scale a 21-month high and the Singaporean dollar touch its strongest level since the start of the year.
The tighter-than-expected election, which may leave Republicans in control of the Senate, appears to have doused some hopes for a large US fiscal package, potentially putting the emphasis back on monetary stimulus that will keep US bond yields low and spur more investment in higher-yielding emerging markets.
While Biden's line on China is yet to be tested, it also leaves the door open to less combative relations with the region's biggest economy.
China's yuan rose as much as 0.7% to hit a 28-month peak, while Indonesia's rupiah, whose high interest rates make it one of the region's most popular bond markets for foreign investors, gained nearly 1%.
"A Biden administration is seen as likely to take a less directly confrontational approach towards China," said Khoon Goh, head of Asia Research for ANZ.
"The positive risk sentiment in markets should start to see portfolio inflows flooding back into Asia, which is supportive for the region's asset markets."
Yields on Indonesia's 10-year benchmark bonds fell 9.7 basis points to 6.288%, their lowest in almost three years.
Thai shares jumped 2.5% to their highest in seven weeks, while Singapore hovered around July highs.
In Seoul, stocks jumped to their highest levels in more than two years.
Shanghai climbed 1.5% as China's exports grew at the fastest pace in 19 months in October with imports also rising, providing further indications of a robust recovery from the Covid-19 crisis.
Elsewhere in global emerging markets, the Turkish lira jumped over 2% after Finance Minister Berat Albayrak said he would resign for health reasons, the second surprise exit of a top economic policymaker in as many days, setting the stage for a sharp rise in interest rates.
In Asia, stocks in Kuala Lumpur dipped after Malaysia extended a partial lockdown of the capital until early December and ordered more states to enter a four-week lockdown as coronavirus infections hit new highs. - Bloomberg
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