Thursday 7th November 2024: Asia-Pacific Markets React to Trump’s Election Victory with Mixed Results

Global Markets:

•  Asian Stock Markets : Nikkei down 0.23%, Shanghai Composite up 0.88%, Hang Seng up 1.07% ASX up 0.16%
• Commodities : Gold at $2662.35 (-0.54%), Silver at $31.07 (-0.84%), Brent Oil at $75.34 (0.6%), WTI Oil at $72.03 (0.59%)
• Rates : US 10-year yield at 4.437, UK 10-year yield at 4.561, Germany 10-year yield at 2.392

News & Data:

• (CAD) Ivey PMI  52.0 vs 54.2 expected

Markets Update:

Asia-Pacific markets were mixed on Thursday following Donald Trump’s victory over Kamala Harris in the U.S. presidential election. NBC News projects Trump will win at least 291 Electoral College votes, securing crucial states like Pennsylvania, North Carolina, and Georgia. This development has led to varied reactions in regional markets, reflecting cautious optimism and uncertainty.

In Japan, the Nikkei 225 reversed earlier gains, ending down 0.25%, while the broader Topix index rose 0.95%. The Japanese yen weakened to 154.7 against the dollar on Wednesday, its lowest level since July, before recovering slightly to 154.41. South Korea’s Kospi also fell, slipping 0.19%, while the Kosdaq, a small-cap index, declined by 1.45%, indicating some investor concerns in the region.

Hong Kong’s Hang Seng index initially dropped but rebounded to close up 1%. Mainland China’s CSI 300 also turned positive, gaining 0.5%. Earlier, Chinese and Hong Kong stocks had declined as Trump’s victory looked increasingly probable. Chinese state media reported that the National People’s Congress discussed raising local government debt, as lower revenues from land sales continue to strain local budgets, making additional funding crucial for public services.

In the U.S., Trump’s win led to record highs across major indices. The Dow Jones Industrial Average surged by 1,508.05 points, or 3.57%, to close at 43,729.93, marking the first time since November 2022 the index saw a single-day gain above 1,000 points. The S&P 500 climbed 2.53% to a new high of 5,929.04, while the Nasdaq Composite rose 2.95% to close at a record 18,983.47.

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