Asian shares advance as Democrat party secures Senate

Bonds recorded a subdued performance, while Asian share markets advanced on Thursday. This came after investors’ sentiment was fuelled by the prospect of massive borrowing and spending as Democrats secured both houses of the United States Congress.

MSCI’s broadest index of Asia-Pacific shares outside Japan placed near a record peak with a 0.5% increase. The jump followed after South Korea’s Kospi and Australia’s ASX 200 advanced more than 1.5%. Meanwhile, Japan’s benchmark index Nikkei traded 2% to reach a record high last seen in 1990.

U.S. Treasuries, on the other hand, plunged to their lowest level in months. The S&P 500 index touched high grounds after Democrats dominated the runoff elections in Georgia, giving them control on both the Senate and the House of Representatives.