SHANGHAI: China shares ended higher on Thursday as US election results showed a firming lead for Democratic challenger Joe Biden, who is seen as favouring a less confrontational approach than President Donald Trump in Sino-US relations.
With financial markets braced for days or even weeks of uncertainty as Trump has opened a multi-pronged attack on vote counts in several states by pursuing lawsuits and a recount, investors have welcomed any indication of a clear winner.
"As long as we have a president, the stock market will celebrate," a Shanghai-based brokerage manager said. At the close, the Shanghai Composite index was up 1.3% at 3,320.13.
The blue-chip CSI300 index gained 1.48%, led by the consumer staples sector, which added 1.61%. New energy shares and Apple suppliers also gained on expectations of easing Sino-US tensions and hopes that a Biden White House would invest more in renewable energy.
The CSI new energy sub-index gained 4.28%. "The election is likely to reduce the tightening relationship between the US and China ... this would have a positive impact on China stocks," said Patrick Yiu, managing director of CASH Asset Management in Hong Kong. The yuan strengthened to 6.6381 in early trade, its highest level against the dollar since July 2018, before trimming gains. It was trading at 6.64434 per US dollar at 0711 GMT.
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