CHINA’S blue-chip index ended at a more than five-year high, as Joe Biden’s victory in the U.S. presidential election raised hopes of a thaw in the trade relations.

The blue-chip CSI300 index rose to its highest closing level since June 17, 2015, while the Shanghai Composite Index added 1.9 percent to 3,373.73. The tech-heavy startup board ChiNext and the STAR50 both advanced 3 percent.

Analysts and traders said the Biden win would help the A share market, at least for the short term, on hopes of improved Sino-U.S. trade ties.

The Biden victory is good for China stocks as it erases uncertainty, said Li Huiyong, vice general manager of Hwabao WP Fund Management Co.

Chinese media struck an optimistic tone about Biden’s win yesterday, saying relations could be restored to a state of greater predictability, starting with trade.

Aiding sentiment, Chinese trade data showed the country’s exports grew at the fastest pace in 19 months in October.

Elsewhere in Asia, South Korea and Thailand stocks soared. Thai shares jumped 2.5 percent to their highest in seven weeks, while Singapore hovered around July highs. In Seoul, stocks jumped to their highest levels in more than two years.

China’s yuan rose as much as 0.7 percent to hit a 28-month peak, while Indonesia’s rupiah, whose high interest rates make it one of the region’s most popular bond markets for foreign investors, gained nearly 1 percent.

The global market would surge as Biden has become projected winner in the U.S. presidential election, according to UBS investment research note released yesterday.

“Markets had already begun to price this as the most likely outcome last week, and expectations of a Biden presidency with a split Congress contributed to a sharp rally in equities,” said Mark Haefele, chief investment officer of Global Wealth Management at UBS AG.

Haefele mentioned in the note that there are at least two aspects of the transition to the next president that are atypical: First, President Donald Trump has not yet conceded the election. Second, the balance of power between the Republican and Democratic legislative agendas has not been determined.

When talking about the U.S. presidential election’s influence on China, Haefele said Biden is likely to take a more predictable and pragmatic approach to Sino-U.S. relations. (SD-Agencies)