Asian markets bounce back to recover from Trump election turmoil

The Hang Seng Index was down more than 2 percent.

And this is despite the fact that a number of Clinton’s policies – such as increased taxes on high-income earners – would have run counter to the personal inclinations of many participants in the U.S. financial market. If the S&P 500 falls 7% from the previous session’s close before 3:25 p.m. The S&P futures slid 5 percent and hit a limit down, meaning the contract could not trade lower, only sideways or up.

NBC News projected Republicans retain control of the House of Representatives.

The Mexican peso plunged 11.54%, its lowest-ever level against the US dollar. Pre-opening trading in Dow futures was down 4.6 percent at one point but recovered more than half its losses as the night wore on.

Tipp said it’s not clear whether Trump would be as disruptive as the markets worry he could be, since it’s unclear what parts of his platform would be pursued and what type of individuals he would choose for his Cabinet.

Oil prices tumbled on Wednesday as vote counting showed Republican Donald Trump edging ahead in an unexpectedly tight USA presidential election, setting world markets on edge. An ounce of gold was up 2.4 percent at $1,305 while the dollar was only 0.4 percent lower at 0.9734 Swiss franc. The central bank had hinted it was ready to move following signs of economic resilience, but that could be threatened amid the uncertainty surrounding Trump’s surprising win.

The greenback had come under pressure on worries that uncertainty over Trump’s policies would cause the Federal Reserve to hold off an interest rate rise, but analysts said those worries had abated for now. The Nasdaq composite declined 16 points, or 0.3 percent, to 5,150. The FTSE 100 index of leading British shares was 0.7 percent higher.

The market mood has turned around dramatically since the immediate aftermath of Trump’s victory, which prompted widespread selling Wednesday in Asia.

First, and most importantly, Trump has promised to launch a trade war against China, by declaring it a “currency manipulator”. Banks and other financial stocks tend to benefit from higher interest rates and less government regulation, two things investors anticipate could happen during a Trump presidency. Crude oil slipped 1.4 percent, while the 10-year US Treasury yield dropped three basis points to 1.82 percent. Brent crude, used to price worldwide oils, slid 29 cents to $45.75 a barrel in London.

Fear gripped the markets as nervousness led to the plunging of shares and currencies, with central bankers expected to intervene and retain their sanity after the mayhem witnessed during the USA election. It was in sharp contrast to futures trading which saw the Dow sink by 750 points at midnight.

The Mexican peso fell sharply, declining 8.4 percent against the dollar as the prospect that Trump would repeal favorable trade policies with Mexico.

A sea of red swept across Asian markets on Wednesday as nervous investors flocked to safe-haven assets amid uncertainties over Mr Trump’s shock victory.

After scoring gains earlier – when it seemed like Democrat candidate Hillary Clinton would thump her Republican foe – Japan’s Nikkei 225 index dropped a whopping 6.1 per cent, while market benchmarks in Australia, South Korea’s and Hong Kong tumbled similar amounts. “It was not one the press or commentators outside of the U.S. really saw coming and fears will abound as to the impact on global trade and global economic growth”, Stone added.