Australian stocks hit highest since December 2007

Australian stocks are trading at 12-year highs this Monday morning.
Australian PM Scott Morrison’s surprise miracle win and tax cut pledge is likely pushing stocks higher.

Omkar Godbole FXStreet Contributor

Australian Prime Minister Scott Morrison’s surprise victory in weekend election is boding well for the domestic stock market.

The S&P/ASX 200 is currently trading at 6,474, the highest level since December 2007, representing 2% gains on the day.

Morrison’s Liberal-National coalition will secure 77 seats in the 151-member lower house, the Australian broadcasting Corp. projected earlier today.

Prime Minister’s victory is being called the biggest come-from-behind win in a generation. After all, the coalition was trailing in most opinion polls.

The election results indicate the voters rejected opposition’s pledge to redistribute wealth and boost the minimum wage growth and have accepted Morrison’s pitch for economic stability. Just hours after claiming victory, the Prime Minister pledged to deliver tax relief, which could boost consumer spending and help shore up the economy.

While Australia stocks are solidly bid, other regional indices are also flashing green. Japan’s Nikkei is currently up 0.60% on the day and South Korea’s Kospi is flashing 1% gains. The futures on the S&P 500 are also up 0.40%.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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