Asian stocks and the dollar climbed, as Democrat Barack Obama was elected US president, raising hopes of fresh action to revive the economy amid the worst financial crisis in decades.
"Markets generally favour a Republican government," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC. "But this belief has collapsed amid the financial crisis."
Hong Kong shares jumped 5.7 percent by midday while Japan's Nikkei stock index was up 2.5 percent in the afternoon. Stocks rose 4.4 percent in Singapore and 2.7 percent in Sydney.
"We're seeing the Obama rally," Patrick Crabb, senior sales trader at Goldman Sachs JB Were in Melbourne, told Dow Jones Newswires.
The euro fell to 1.2868 dollars in early afternoon trade in Tokyo, compared with 1.2942 in the morning before television networks projected Obama's victory .
Obama is expected to "bring change to the country amid an unprecedented crisis," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.
"Even if economic figures and sentiment remain grim, markets still have high expectations for the policies that he will iron out from January," he added.
Excerpt taken from Yahoo
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