Asian markets were hit by fresh volatility on November 17, as uncertainty permeates trading floors after Donald Trump’s shock election win, while the dollar pushed back up on expectations of a US interest rate hike.
Investors have been struggling to ascertain the outlook for the global economy under a Trump presidency after his bellicose rhetoric regarding trade agreements and spending plans that could ramp up inflation – and borrowing costs – at home.
While a surge in the dollar against the yen has sent Tokyo’s Nikkei to nine-month highs, emerging market bourses and currencies have been hit with an outflow of foreign cash as traders bet on better returns in the United States.
The Nikkei ended flat while Hong Kong edged down by 0.1% and Sydney gained 0.2%.
Shanghai was 0.1% higher, Seoul added 0.1% and Jakarta eased 0.1%, while Kuala Lumpur dipped 0.2%. However, Manila gained 1.2% after data showed the Philippines’ economy grew more than expected in July-September.
In early European trade London added 0.1% but Paris and Frankfurt each fell by 0.2%.
“Asian markets have been lacking conviction this afternoon”, Gary Huxtable, client advisor at Atlantic Pacific Securities in Australia, said in a note.
The fluctuations came after a tepid lead from Wall Street, where the Dow fell from a record high after a seven-day winning run. (PanARMENIAN/Business World Magazine)
