Global Markets Rise Despite Turmoil in U.S. Capitol

Global Markets Rise Despite Turmoil in U.S. Capitol

International stock markets mostly rose, as investors anticipated higher government spending under a Democratic-controlled Senate and largely looked past the storming of the U.S. Capitol by supporters of President Trump, which for hours had disrupted the certification of President-elect Joe Biden’s Electoral College win.

By late morning in Hong Kong on Thursday, key benchmarks in Australia, Japan and South Korea had all risen, gaining between 1.8{a3b37e57a53f84d6443a5356ab02984f87900b4dee9193a01d6bf48d204ad87c} and 2.3{a3b37e57a53f84d6443a5356ab02984f87900b4dee9193a01d6bf48d204ad87c}. Indexes in Hong Kong and Shanghai retreated modestly, declining less than 0.5{a3b37e57a53f84d6443a5356ab02984f87900b4dee9193a01d6bf48d204ad87c}.

Futures suggested that U.S. stocks could advance on Thursday, with futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq-100 rising between 0.4{a3b37e57a53f84d6443a5356ab02984f87900b4dee9193a01d6bf48d204ad87c} and 0.8{a3b37e57a53f84d6443a5356ab02984f87900b4dee9193a01d6bf48d204ad87c}. Most major U.S. indexes, except the Nasdaq, had gained Wednesday, despite the Capitol unrest.

“Overall, the markets are looking at the positives,” said Ken Wong, a portfolio manager at Eastspring Investments. He said investors were looking beyond the unrest in Washington, D.C., as well as other issues such as the potential tax implications of Democratic control of Congress as well as the presidency. Instead, Mr. Wong said investors were focusing on the prospects for a faster rollout of coronavirus vaccines, a more rapid recovery in the economy, and increased outlays on economic-relief measures such as stimulus checks and infrastructure spending.

A selloff in U.S. Treasurys moderated, with the yield on the 10-year note rising slightly to 1.047{a3b37e57a53f84d6443a5356ab02984f87900b4dee9193a01d6bf48d204ad87c} after surging in the previous session. Bond yields rise as prices fall. The 10-year yield climbed past 1{a3b37e57a53f84d6443a5356ab02984f87900b4dee9193a01d6bf48d204ad87c} for the first time since March on Wednesday, on bets for increased U.S. stimulus.

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