The equity and financial markets in the Asian and Pacific Rim were trending higher on news that British Prime Minister Boris Johnson’s Conservative Party has cruised to a commanding election victory.
There has also been a big breakthrough between the United States and China on a trade deal.
Asian traders are also cheering news that that the United States and China have reached a preliminary trade agreement. Details are still scarce on the deal.
Traders will now want to know more on the status of existing and future tariffs. They will also want to know when this agreement will be actually signed.
In Japan, the benchmark Nikkei 225 soared 2.25 percent. In Tokyo, the broader Topix index added 1.52 percent.
In economic news, out of Japan, the Bank of Japan’s Tankan survey showed business confidence hitting a more than six year low.
In South Korea shares gained over 1.3 percent. Index heavyweight SK Hynix added over five percent.
In Hong Kong, the Hang Seng index added over two percent. Shares of HSBC added two percent.
Elsewhere in the Asian and Pacific Rim, the Australian ASX 200 was up 0.53 percent with most sub-sectors higher on the day.
Asian Sentiment Improves after the Election Result in the United Kingdom
The Conservative Party led by UK Prime Minister Boris Johnson has won a landslide victory. They are projected to take at least an 86 seat majority, in the general election. The Labour Party, led by Jeremy Corbyn, has conceded defeat and Corbyn has resigned as head of his party.
The United Kingdom is set to leave the European Union in an orderly fashion by January. Traders will now be watching trade talks. Both Britain and the EU must now negotiate a new free trade agreement (FTA).
On the economic calendar, today, the United States will publish monthly retail sales as well as their monthly core retail sales data.