Markets Open In Japan With A 29-Year-High Due To A “Biden-Bounce”

Shares in Japan hit a near 30-year high on Monday, the first day of trading following news that Joe Biden had won the US presidential election.

Japan’s main share index – the Nikkei 225 – rose 2.5% in Asian trading to hit a level not seen since 1991.

Stock markets across Asia also saw healthy gains with a positive sentiment in Australia, China and Hong Kong.

Japan’s rise came despite Japan Airlines’ share price falling 15% after announcing plans to raise new capital.

Investors in the region had been nervous following the uncertainty of a US election deadlock, as voting took longer due to postal votes.

There are now hopes that the new administration will expand fiscal stimulus in the US and widen measures to reduce the spread of Covid-19.

There was also optimism among Chinese investors, who saw a Biden win as positive for trade and technology policy.

“The political uncertainty has largely gone as the election is over,” said Larry Hu, Head of China Economics at Macquarie bank.