Stock markets in the region rallied strongly yesterday despite the outcome of the United States presidential election hanging in the balance.
Analysts and investors had initially hoped for a decisive outcome, but many seem to now accept that some political gridlock might be a good thing.
"On the bright side, Trump's tax cuts are unlikely to be reversed under this scenario," said the Bank of Singapore in a note, adding that political gridlock will also make it harder for stimulus spending programmes to be enacted. Still, it is expecting "sufficient common ground" for US lawmakers to pass a relief aid package of about US$500 billion (S$677.96 billion) in the first quarter next year.
Local shares made the most of the buoyant mood yesterday, with the benchmark Straits Times Index (STI) closing up 72.64 points, or 2.89 per cent, to 2,588.62. Gainers outnumbered losers 325 to 143 on trade of 1.8 billion shares worth $1.87 billion. All but four of the STI components ended the day higher.
The best performer was Ascendas Reit, which ended 6.65 per cent higher at $3.21. It was followed closely by CapitaLand Integrated Commercial Trust, which climbed 6.18 per cent to $1.89.
The most heavily traded stocks by value were the three banks - DBS, OCBC and UOB - which also reported their third-quarter numbers and provided relatively positive guidance this week.
DBS ended the day 4.08 per cent higher at $22.43. OCBC climbed 3.48 per cent to $8.93 and UOB was up 3.23 per cent to $20.44.
Around the region, Hong Kong's Hang Seng Index rose 3.25 per cent and South Korea's Kospi put on 2.4 per cent. Closer to home, key benchmarks for Jakarta, Kuala Lumpur and Bangkok were up about 3 per cent.
