Asian shares see two-and-a-half-year peak on stimulus-driven optimism

Asian shares recorded a 2-1/2-year peak on Friday. This followed after investors’ sentiment grew on U.S. stimulus talks, deviating their focus from weak employment data. Meanwhile, financial markets in mainland China advanced after a week-long holiday.

MSCI’s broadest index of Asia-Pacific shares outside Japan recorded a 0.15% gain. The index is currently heading toward its record high last Aug. 31, its sharpest jump since March 2018. China’s CSI300 index was seen 1.68% higher after the Golden Week holidays.

Japan’s benchmark index Nikkei plunged 0.1% after recording a 7-1/2-month high. Moreover, futures for the S&P 500 tallied a 0.47% gain.

Democratic Presidential candidate Joe Biden’s growing electoral traction greatly reduced the risk of a contested election and had made the prospect of stimulus more possible. This also alleviated investors from concerns over a Democrat pledge to ramp up corporate tax rates.