Asian markets follow Wall Street higher ahead of election

BEIJING (AP) — Asian stock markets followed Wall Street higher on Tuesday as investors watched for U.S. election results, hoping a win by challenger Joe Biden in the presidential race might lead to more economic stimulus.

Benchmarks in Shanghai, Hong Kong, Seoul and Sydney advanced. Japanese markets were closed for a holiday.

Traders are betting that Biden might push for a bigger U.S. stimulus if he unseats President Donald Trump. That would require support in the Senate, which is controlled by Trump's Republicans. Some incumbents, also up for re-election this week, face challengers from Biden's Democratic Party.

On Monday, Wall Street closed higher amid indications Biden might be leading.

Many investors expect a “Democratic sweep, which is the key to unlocking Congress's ability to deliver significant fiscal stimulus,” said Stephen Innes of Axi in a report.

The Shanghai Composite Index rose 1.1% to 3,271.71 and the Hang Seng in Hong Kong added 2% to 24,956.10.

The Kospi in Seoul gained 1.7% to 2,339.29.

In Sydney, the S&P-ASX 200 rose 2.3% to 6,087.80 after the Reserve Bank of Australia cut its key interest rate by 0.15 percentage point to a record low 0.1%. The rate cut was expected. The central bank governor, Philip Lowe, said the RBA was committed to doing what it can to create jobs. The Australian economy contracted during the first half of the calendar year, although Lowe said he expects official data will reveal some growth in the September quarter.

India's Sensex opened up 0.9% at 40,131.45. New Zealand and Southeast Asian markets advanced.

Investors have swung between optimism the global economy was coping better with the coronavirus pandemic and unease that U.S. legislators have failed to approve new aid after expanded unemployment benefits that...