Australia: Shares jump as markets cheer win for Biden

[SYDNEY] Australia shares finished higher on Monday, after notching their best intraday session since early March, as investors expect the election win for US President-elect Joe Biden to usher in a calmer period of global trade.

A result that would likely leave Republicans still in control of the Senate would also mean legislative gridlock, which could hurt the Democratic agenda of introducing higher corporate taxes and tough financial regulations, analysts said.

With all the major indices trading in the green, the S&P/ASX 200 benchmark index rose for a third session to close 1.8 per cent higher.

"Having a Biden presidency probably takes away some of the potential flare-ups in terms of global trade," said James Tao, market analyst at CommSec.

"This will mean there's less disruption to taxes and tax reform. That's certainly something businesses have been rallying on," he added.

"In terms of relationship with US, Australia has always had a very strong relationship so, there's unlikely to be any major changes. But you could say there's certainly no downside to it for sure." In the home front, Australian mining stocks were the biggest gainers, recording their best session since June 16 as iron ore futures surged nearly 5 per cent.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index ended 1.8 per cent firmer after scaling a record high during the session.

According to a Reuters poll, the central bank is seen holding the official cash rate at 0.25 per cent at a monetary policy meeting on Wednesday.

REUTERS