Democrat Joe Biden's win in the U.S. presidential elections has caused a rally on Asian stock markets. Even before the weekend, the expectation that the former vice president would prevail caused major stock indices on the continent to rise. The Kospi ended Monday 12.5 percent above January levels, while the embattled Hang Seng caught up to 9 percent below early 2020 levels.
Despite coronavirus outbreaks returning in some parts of Asia throughout the year, local stock markets continued to gain from May on. The development mirrored the situation in the U.S. where infections continued to spread after a short slowdown, but stock markets did not reacted to the virus reprise in the same way they did when the virus emerged in early 2020.
Hong Kong, which battled a spike in cases in July and also is embroiled in a fight for its independence with China, saw markets recover the least as a result. In China, where case numbers have remained most stable, markets have been back above January levels since early July. In August, a first batch of companies debuted on Shenzhen's overhauled Nasdaq-style ChiNext index and were overrun by investors. The development, again was reminiscent of tech stock gains in the U.S., which seem to have detached themselves from the coronavirus drama.