Global markets rose Monday, with weekend confirmation that Democrat Joe Biden had won the presidency giving investors fresh impetus to push stocks higher.
The continuation of last week’s rally in part reflected reduced uncertainty—as the election looked largely resolved—combined with expectations that a divided government would result in modest policy measures on taxes and spending.
On Saturday, the Associated Press said the former vice president had garnered enough electoral college votes to win, and on Sunday Mr. Biden forged ahead with his transition to the White House, charting a course for significant policy changes even as President Trumpdeclined to concede the race.
By early afternoon Hong Kong time, S&P 500 futures had gained 1.8%, while Nasdaq-100 futures advanced 2.7%. Regional markets in Asia also rallied, with benchmarks in Japan, South Korea, India and Taiwan hitting multi-year or record highs.
“The market is cheering about more certainty and hopefully less volatility with Biden winning,” said Ken Wong, a portfolio manager at Eastspring Investments. Investors were also positive about the prospect of the Republicans likely retaining control of the Senate, which could limit the Democrats’ ability to introduce major initiatives such as rolling back tax cuts, Mr. Wong said.