Democratic U.S. presidential nominee Joe Biden disembarks from his campaign plane as he arrives at Miami International Airport prior to participating in a town hall event in Miami, Florida, U.S., October 5, 2020. REUTERS/Brendan McDermid
A DEMOCRACTIC sweep in next month’s U.S. election would boost Asian equities, while reducing the allure of the region’s bonds, according to money managers and strategists.
A Joe Biden victory along with Democrats winning control of both houses of Congress is likely to spark substantial fiscal stimulus, benefiting Asian stocks by reviving the U.S. economy and trade flows, according to BNP Paribas Asset Management and Credit Suisse Group AG. Such a backdrop could push Treasury yields higher, curbing appetite for debt from countries such as South Korea and Thailand, historical patterns show.
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