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World shares pushed on from one-month highs, with Asian stocks closing in on two-and-a-half-year highs, as expectations grew of a Democratic victory in US elections next month, reviving hopes for more US stimulus.

A widening lead for Democratic presidential candidate Joe Biden and the possibility his party will win both the Senate and the White House in the November 3 vote has raised the prospect of a big economic stimulus.

The possibility of stimulus is also helping to counter investor wariness about a Democrat pledge to hike corporate tax rates.

The pan-European STOXX 600 index rose 0.3 percent, set for its second straight week of gains. Wall Street futures were up 0,4 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0,3 percent, inching closer to its August 31 peak, which was its highest level since March 2018. China’s CSI300 index gained 2 percent after the Golden Week holidays.

Japan’s Nikkei dipped 0,1 percent after reaching a seven-and-a-half-month high.

The MSCI world equity index, which tracks shares in 49 countries, was up 0,1 percent at a more than one month high.

On Wall Street on Thursday, the S&P 500 gained 0,80 percent and the Nasdaq Composite added 0,5 percent. In a sign markets are pricing in a Biden victory, clean energy-related shares have outperformed in recent weeks. — Reuters.