Asian mar­kets rat­tled by Trump elec­tion lead

The Myanmar Times - - International Business -

ASIAN eq­ui­ties tum­bled yes­ter­day, ex­tend­ing a global sell-off, and the Mex­i­can peso fell af­ter a poll showed Don­ald Trump over­tak­ing mar­ket favourite Hil­lary Clin­ton in the race for the White House.

With Ms Clin­ton un­til last week com­fort­ably ahead, traders were up­beat about her chances of win­ning on Novem­ber 8 but news that the FBI was again look­ing at her emails has raised the prospect of Mr Trump be­com­ing pres­i­dent.

“Since the FBI re­opened its case into Hil­lary Clin­ton’s emails last Fri­day, her sub­stan­tial lead in the polls has been dec­i­mated and some now even show Trump in the lead,” Craig Er­lam, a se­nior mar­ket an­a­lyst at OANDA, said in a note.

“It’s been clear that mar­kets would much pre­fer the sta­bil­ity that a Clin­ton vic­tory would bring for the US econ­omy and the re­ac­tion since the polls started to change so dra­mat­i­cally just con­firms this.”

The Wall Street losses fil­tered through to Asia, where Tokyo closed 1.8 per­cent lower, while Hong Kong dived 1.5pc and Shang­hai ended down 0.6pc.

Syd­ney and Seoul each sank more than 1pc and there were also sharp losses in Welling­ton, Manila and Taipei.

Cur­rency traders also took fright, flee­ing into the safe-haven yen. The green­back fell to 103.73 yen in Tokyo, down from 104.12 yen in New York and well off the lev­els of above 105 yen seen the day be­fore.

An­a­lysts say a Trump win could also lead the Fed­eral Re­serve to put off an ex­pected De­cem­ber in­ter­est rate hike ow­ing to wor­ries about his ef­fect on the econ­omy.

The green­back how­ever ral­lied against higher-yield­ing, riskier Asia-Pa­cific units, soar­ing 0.9pc against the South Korean won and 0.5pc ver­sus the Aus­tralian dol­lar.

A week-long re­treat in oil prices also ex­tended in Asia, with both con­tracts down al­most a tenth from re­cent highs as in­vestors grow wor­ried about the chances of suc­cess for OPEC’s Septem­ber agree­ment to cut out­put. –

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