Mar­kets cheer Clin­ton in pres­i­den­tial de­bate

The Myanmar Times - - International Business -

FI­NAN­CIAL mar­kets cheered yes­ter­day Hil­lary Clin­ton’s per­for­mance in the first US pres­i­den­tial de­bate, with stocks and high-risk cur­ren­cies stag­ing a “re­lief rally” as in­vestors saw her as vic­tor over Repub­li­can ri­val Don­ald Trump.

Key Asian bourses got a bounce as a con­fi­dent Ms Clin­ton bested her ri­val in the 90-minute show­down, some re­vers­ing ear­lier de­clines.

Tokyo ended 0.8 per­cent up, a dra­matic volte-face from its 0.9pc drop at the open, while Syd­ney also trimmed early losses.

Hong Kong opened 0.5pc higher but jumped in the af­ter­noon to close more than 1pc higher. Shang­hai was up 0.6pc by the close af­ter be­ing flat most of the day.

Seoul, Bangkok and Sin­ga­pore also gained.

“US fu­tures have moved ahead as the de­bate un­rav­elled, and I think that is one of the fac­tors” for Asian mar­kets eras­ing losses, Michael McCarthy of CMC Mar­kets said.

“In pol­icy terms, no doubt to Clin­ton; in emo­tional and tone terms, Clin­ton is also ahead at this stage. She is win­ning on both counts would be my cur­rent as­sess­ment.”

On forex mar­kets the yen dropped, while emerg­ing-mar­ket and other cur­ren­cies surged as traders moved back into riskier as­sets.

The Mex­i­can peso re­bounded off a record low, rock­et­ing over 2pc to 19.44 against the dol­lar. The unit had slumped be­fore the de­bate as the prospect of a Trump pres­i­dency fanned con­cerns over the neigh­bours’ po­lit­i­cal and eco­nomic ties.

“Given that the Mex­i­can peso has been the most sen­si­tive cur­rency to the US elec­tion out­come, it took cen­tre stage as the mar­ket re­acted to the US pres­i­den­tial de­bate,” said Khoon Goh, the head of re­gional re­search at Aus­tralia & New Zealand Bank­ing Group in Sin­ga­pore.

An­gus Ni­chol­son, a Mel­bournebased mar­ket an­a­lyst at IG Ltd, agreed the mar­ket swing may be a re­flec­tion of Ms Clin­ton do­ing well.

“Trump is largely re­garded as a mar­ket neg­a­tive and cer­tainly him do­ing quite poorly in the de­bate would re­as­sure a lot of in­vestors. But it’s early days,” he was quoted by Bloomberg as say­ing.

Oil re­versed the pre­vi­ous day’s gains, with eyes on a pro­duc­ers’ meet­ing in Al­ge­ria.

Mem­bers of the Or­gan­i­sa­tion of the Petroleum Ex­port­ing Coun­tries (OPEC) will meet to­day with key pro­ducer Rus­sia, on the side­lines of the In­ter­na­tional En­ergy Fo­rum.

They are ex­pected to dis­cuss ways to sta­bilise prices that have been de­pressed since 2014 amid a stub­born sup­ply glut, but there is on­go­ing spec­u­la­tion about whether pro­duc­ers will agree to re­strict out­put. Iran has said it will not do so.

West Texas In­ter­me­di­ate was down 34 cents at US$45.59 while Brent lost 47 cents to $46.88.

Photo: AFP

Peo­ple watch the first US pres­i­den­tial de­bate be­tween Demo­cratic can­di­date Hil­lary Clin­ton and Repub­li­can Don­ald Trump, at a de­bate watch party at The Abbey bar and res­tau­rant in West Hol­ly­wood, Cal­i­for­nia.

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