After the Democrats won both Georgia Senate seats overnight, fiscal stimulus frenzy swept US markets, with cyclicals powering higher at the expense of technology, which is now nervously looking over its regulatory shoulders. The S&P 500 rose 0.57%, with the NASDAQ falling by 0.67%, and the Dow Jones leaping 1.44% higher. With Congress reconvening this evening to anoint President-elect Biden, the futures on all three US indexes has risen strongly, setting up Asia for an impressive day.
The stimulus-mania sweeping US markets have lifted the Nikkei 225 by 1.90%, and the KOSPI by 2.25%. China's Mainland exchanges are rallying, but less so, weighed down by US delisting and app bans. There may also be lingering concerns at Trump's next China moves in the last days of his Presidency. Nevertheless, the Shanghai Composite and CSI 300 have risen 0.60% today. With many of those Chinese company banned apps and delisted telcos maintaining a dual listing in Hong Kong, the Hang Seng is the regions underperformer, being unchanged thus far.
Regionally, Taipei, Jakarta, Singapore have moved 1.0% higher today, with Manilla up 0.35%. Kuala Lumpur has fallen by 0.95% as yet again, Malaysian politics, ever its Achilles heel, rear their ugly head. Calls are increasing from within the ruling, but unstable, coalition for a snap election. That is destabilising sentiment in Malaysian markets, not least because politicians, having just suffered a spike in Covid-19 cases after a provincial election, but seem to think it is a good idea to do the same nationally.
The commodity and cyclical-centric Australian and New Zealand markets are unsurprising, enjoying a good day as well. The NZX 50 has climbed 1.55%, with Australia's All Ordinaries rallying 1.60%, and the ASX 200 leaping 1.75% higher.
The stimulus-mania will flow into Europe this afternoon, with the main risk point being the US President's next actions, after a spectacular own goal today.