Asian stock markets were trading higher on Wednesday (23 November), with the Shanghai Composite up 0.05% at 3,250.07 as of 5.53am GMT, following record gains in the Dow Jones Index overnight.
The American index closed above 19000 on Tuesday, marking its highest close in its 120-year history.
According to analysts, while initial reactions of the stock markets to Donald Trump winning the US elections were negative, the mood had turned positive amid his aggressive stimulus plans. Analysts said investors felt the plans would counter the negatives like Trump's plans to scrap free trade pacts such as the Trans-Pacific Partnership (TTP) deal.
"The market views have changed...The overriding sentiment is that [initial] misgivings about a Trump presidency are being offset by expectations that he has proposed a fiscal stimulus," Ric Spooner, chief market analyst at CMC Markets, was quoted as saying by MarketWatch.
The bullish trend is also partly ascribed to the positive data on October US home buying activity released overnight. It was a second straight increase to reach new highs, according to the National Association of Realtors.
Zhou Xu, an analyst at Nanjing Securities, said: "The slide in bond yield and lack of alternative investment channels prompt some investors to consider stocks again, as the market has stabilized largely since last year's plunge."
Indices in the region were trading as follows at 6.12am GMT:
|Hong Kong||Hang Seng Index||22,710.11||Up||0.14%|
|Japan||Nikkei 225 (Holiday)|
Overnight (22 November), the FTSE 100 closed 0.62% higher at 6,819.72, while the Dow Jones Industrial Average closed higher by 0.35% at 19,023.87.
Referring to commodities, Spooner said Trump's promise to increase infrastructure spending had led to an increase in the global prices of steel and cement. This promise, he said, would also have a positive impact on the demand for commodities such as copper, going forward.
Oil was seen trading in the red. As of 6.21am GMT, Brent Crude was trading lower by 0.49% at $48.88 (£39.38) a barrel, while WTI crude oil was trading 0.44% lower at $47.82 a barrel.