Overnight Markets: US stocks gain on expectation of Republican win

Wall Street rose on Tuesday as investors were optimistic about the Republican congressional gains in the midterm election and the Federal Reserve’s policy meeting today, which is expected to take steps towards further quantitative easing.

The Dow Jones industrial average was up 64 points, or 0.6%, at 11,189. The Standard & Poor's 500 Index was up nine points, or 0.8%, at 1,193. The Nasdaq Composite Index was up 29 points, or 1.1%, at 2,533.

Healthcare stocks rose amid expectation Republicans can spearhead attempts to repeal or not fund parts of the proposed healthcare law. The Morgan Stanley Healthcare Payor index .HMO was up 2.7%. Cigna Corp advanced 4.2%.

Energy stocks gained as Republicans, traditional supporters of the oil industry, are seen as less likely to take regulations that would hit profits. The sector was boosted further on a rise of 1.1% in oil prices.

In corporate news, MasterCard Inc surged 2.9% after it registered a third-quarter profit that beat expectations. Kellogg Co declined 2.2% to $49.63 after it forecast weaker-than-expected earnings growth in 2011. Pfizer fell 1% after reporting its quarterly results and raising its earnings forecast for the full year.

In financial sector, regional banking stocks declined after Moody’s Investors Service cut the ratings on the stocks of nine such lenders. Zions Bancorporation fell by 1.3%, SunTrust Banks lost 1% and Regions Financial Corp was lower by 1.8%.

In current trading, Asian equities rose on Wednesday after strong earnings report from Westpac Banking Corp. and rise in commodity prices. Stocks were boosted further after Deutsche Bank raised its estimate for South Korea’s Kospi index.

The MSCI Asia Pacific excluding Japan Index rose 0.4% to 471.65 as of 10:01 a.m. in Hong Kong. Japanese markets are closed for a holiday. Australia’s benchmark S&P/ASX 200 Index rose 0.4% and New Zealand’s NZX 50 Index advanced 0.2%. South Korea’s Kospi Index climbed 1% to 1,938. Shanghai Composite Index was trading 0.2% lower at 3,040.

Westpac advanced 1% after second-half profit almost tripled. BHP Billiton Ltd. added 0.8% as oil and metal prices climbed in New York yesterday.