Australian stocks close higher as markets wager Trump victory
Banks, tech stocks up over 1%
CBA hits record high
Tech stocks hit near 3-week high
Updates to close
By John Biju
Nov 6 (Reuters) -Australian equities rose on Wednesday, tracking the gains on Wall Street overnight and in U.S. stock futures on the day, as investors increasingly priced in Donald Trump winning the U.S. presidential election, although the final results are not yet in.
The S&P/ASX 200 index .AXJO closed 0.8% higher at 8,199.5 points.
Trump defeated Democrat Kamala Harris in the battleground states of North Carolina and Georgia, Edison Research projected, taking him closer to completing a political comeback four years after he left the White House. The outcome remained uncertain in five other states expected to determine the winner.
"Asian markets were presented with a strong overnight lead from Wall Street. This meant that stocks were on the front-foot to start the day despite election uncertainty," said Tim Waterer, Chief Market Analyst at KCM Trade.
"As the vote tallies have rolled in, U.S. futures have pushed higher throughout the session which validated the gains made on the ASX."
Financial stocks .AXFJ climbed 1.6%, leading Australian shares higher. The Commonwealth Bank of Australia CBA.AX hit a record high, while the National Australia Bank NAB.AX and Westpac WBC.AX added over 1% each.
"The global funds are long equities and defending it. Like in the U.S., where they were buying tech to hold up the market overnight, they are buying banks and miners in our market to hold it up," Mathan Somasundaramm, CEO of Deep Data Analytics said.
Technology stocks .AXIJ also rose 1.9% to their highest in nearly three weeks.
Investors are alsoawaiting the Federal Reserve's ratedecision on Thursday, with a 25-basis-points rate cut widely expected. The Reserve Bank of Australia (RBA) kept rates steady on Tuesday.
"The upcoming FOMC meeting... is likely to boost investment sentiment for ASX traders and spark renewed hope that the RBA may follow suit," said Hebe Chen, a market analyst at IG Markets.
New Zealand's benchmark S&P/NZX 50 index .NZ50 declined 0.1% to 12,649.17 points.
Reporting by John Biju in Bengaluru; Editing by Sumana Nandy
For more information on DIARIES & DATA: U.S. earnings diary RESF/US Wall Street Week Ahead .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets NEWS1
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
