NewAsian markets’ turmoil ease as traders take stock of a Trump presidency
Benchmark stock indexes regained some ground after plunging in every Asian market, while the price of gold rose
The turmoil in Asia’s financial markets eased after knee-jerk sell-offs in stocks, currencies and commodities for safe haven assets gave way to a fresh look at the economic implications of Donald Trump in the White House.
Benchmark equity indexes fell in every Asian market, while the price of gold marked the biggest gains since Britain’s Brexit vote in June. Mexico’s peso was the biggest loser among emerging market currencies, weakening against the US dollar because of Trump’s frequent comments ostracising the nation. The won, the ringgit, the rupiah, the Singapore dollar and the Philippine peso weakened, while the yen strengthened as traders took refuge in the safe-haven currency.
“Trump winning is sending shock waves across the world,” said Nigel Green, founder and CEO of deVere Group. “Enormous volatility can be expected in the markets.”
Hong Kong’s key Hang Seng Index fell as much as 951.76 points, or by 4.2 per cent, before ending the day 2.2 per cent lower at 22,415.19. The Hang Seng China Enterprises Index that tracks H shares ended 2.9 per cent down at 9,378.66, after plunging as much as 5.3 per cent earlier.
On the mainland, the CSI 300 Index dipped 0.5 per cent to 3,353.05, while the Shanghai Composite Index dropped 0.6 per cent to 3,128.37 and the Shenzhen Composite Index retreated 0.6 per cent to 2,068.47.
Other Asian markets were also in turmoil. Japan’s Nikkei Average closed down 5.4 per cent at 16,251.54, after plunging as much as 6.2 per cent earlier.