Shares rise as traders see boon in U.S. stalemate

The votes are still being counted.

But the U.S. could face years of political stalemate.

There’s a high chance now of a Democrat president facing off against a Republican-led senate.

And that’s a prospect equity traders seem to quite like.

Shares in Asia zoomed close to three-year peaks on Thursday (November 5).

Hong Kong’s Hang Seng Index was the best performer, up over 3 percent to a 16-week closing high.

One analyst told Reuters that U.S. gridlock was actually a ‘goldilocks scenario’, as it would mean no radical policy changes.

Some in Asia also looked forward to a Democrat administration being less combative towards China.

Fallout from the scrapping of the Ant Group IPO actually helped drive gains in Hong Kong.

With the mega-listing not happening today, investors put their money into other stocks instead, driving the tech index over 5% higher.

The gains then carried over into Europe.

Benchmark indexes there all opened in the green, with Germany’s Dax up around 1% early on.

A bigger-than-expected boost in bond-buying stimulus from the Bank of England was among factors helping sentiment.

Some strong earnings reports were another positive, with Societe Generale one to say it had swung back into profit.

Shares in the French bank rose as much as 5.7% in the first hour of trade.

All eyes though remain on America’s election nail-biter.

But traders may not mind if it ends in a kind of draw.