Asian Stocks went red at closing, following the US election

[TinyKimLeader]

Along with the other countries in the region such South Korea, Taiwan, Singapore, NZ, Australia, Malaysia, Indonesia, etc. Full list

 

Nikkei suffers biggest daily drop since Brexit vote as Trump nears shock victory

TOKYO, Nov 9 Japanese stocks dived more than 5 percent on Wednesday, posting their biggest daily drop since the Brexit poll in June as investors ran for cover with television network projections showing Republican Donald Trump closing in on a shock victory in the U.S. presidential election.

The Nikkei dropped 5.4 percent to end at 16,251.54 after swinging wildly in positive and negative territory as the exit poll results from the U.S. vote rolled in.

 

 

The Nikkei volatility index jumped as much as 35 percent to 30.58, the highest since July 29.

The Tokyo stock market closed before the final results were out.

Investors are increasingly worried about the possibility of Trump adopting protectionist policies and backing out of international trade deals, which would be negative for some Japanese industries such as the auto sector, traders said.

 

The auto sector was the biggest loser on the board, slumping 6.7 percent. Toyota Motor Corp tumbled 6.5 percent, Honda Motor Co lost 7.8 percent and Nissan Motor Co dropped 6.0 percent.

 

"Strong pessimism weighs in the market, and the market would probably suffer extended drops for about a week," said Akio Yoshino, chief economist of investment management division at Amundi Japan.

 

He added that investors will focus on whether the government will be ready to announce measures to counter the impact on the market and the yen.

 

The dollar was down 2.6 percent at 102.350 yen after dropping more than 3 percent during a volatile day that saw it rise to 105.480 earlier.

 

A strong yen eats into the repatriated profits of Japanese exporters, weakening their ability to invest abroad.

High-beta financials were also battered, with Nomura Holdings shedding 6.2 percent and Mitsubishi UFJ Financial Group falling 5.9 percent.

 

Both trading volume and turnover in the cash market were heavy and hit the highest since February, with 3.8 billion shares, with a trading value worth 3.92 trillion yen, changing hands on the Tokyo Stock Exchange's first section.

Nikkei futures saw heavy trade as well, with 268,420 contracts transacted, the largest volume since August 2015 and the fourth largest ever.

 

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Markets had favoured Clinton as a status quo candidate who would be considered a safe pair of hands at home and on the world stage.

 

"Over time, the effects of the election on Japan and the rest of the world will depend on the actual path of U.S. policies," said Jeremy Osborne, investment director of Fidelity International in Japan.

 

Osborne added that the fate of the Trans Pacific Partnership (TPP) free-trade deal and closer ties with Russia are key policies which could be affected by the election result.

 

He added that despite this, major economic policy changes appear unlikely in the near term and the focus will return to the U.S. Federal Reserve's monetary policy and the prospects for a U.S. rate hike in December.

The broader Topix dropped 4.6 percent to 1,301.16, with all of its 33 subsectors in negative territory. The JPX-Nikkei Index 400 shed 4.6 percent to 11,662.18.

 

 

Source: http://www.reuters.com/article/japan-stocks-close-idUSL4N1DA3HB

 

Hong Kong stocks tumble on Trump election triumph

Nov 9 Hong Kong stocks touched a 3-month low on Wednesday, losing early gains to tumble over 2 percent as investors fled risky assets as Republican Donald Trump claimed a shock victory in the U.S. presidential election.

The Hang Seng index fell 2.2 percent, to 22,415.19, while the Hong Kong China Enterprises Index <.HSCE > lost 2.9 percent, to 9,378.66 points.

 

Reflecting rising investor anxiety, the HSI Volatility Index , a measure of market stress, shot to a fresh high of nearly 26 at one point, the highest level since the Brexit vote in June.

 

Trump, who has stoked uncertainty over his stance on foreign policy, trade and immigration, rattled world markets that had expected Democrat Hillary Clinton to defeat the political outsider.

 

Many investors drew comparisons with the Brexit vote, when Hong Kong stocks tumbled nearly 5 percent as Britain's referendum decision to leave the European Union took investors by surprise.

 

Shares fell across the board in Hong Kong while sovereign bonds and gold rallied, as investors dumped stocks and sought safe haven assets.

source: http://www.reuters.com/article/china-stocks-hongkong-close-idUSL4N1DA3LZ

 

China stocks end lower on U.S. election jitters

Nov 9 China stocks ended lower on Wednesday, but earlier losses were partially reversed, as worries eased over an increasingly possible shock U.S. election win for Republican Donald Trump.

 

The blue-chip CSI300 index fell 0.5 percent, to 3,353.5, while the Shanghai Composite Index lost 0.6 pct to 3,128.37 points.

 

Global markets had bet on a Hillary Clinton victory, but every new exit poll in the U.S. election showed the race to be a nail-biter, sending investors stampeding to safe-haven assets as they braced for the possibility of the kind of "Brexit shock" that has so far been under-priced.

 

But falls in China shares - typically shielded from global market volatility by strict capital controls - were more subdued, with benchmark indexes only down slightly amid data showing a recovery in producer prices.

 

The "sentimental repercussions", which analysts cited as one of the reasons for the sell-off earlier today, seemed to have limited impact on a relatively strong China market, with benchmark SSEC having climbed to a 10-month high on Tuesday.

 

Most sectors lost ground, while material and property stocks gained, lifted by a strong rally in the shares of gold miners amid a rush to safe-haven assets.

 

Chinese developer giant Vanke surged as much as 10 percent despite overall weakness in the market, after reports that China Evergrande Group and its "allies" had further boosted their combined stake in Vanke to more than 10 percent.

source: http://www.reuters.com/article/china-stocks-close-idUSZZN2RVG00

[respect]

now america will be great again

[StrifeRaider]

that's allot of negatives 

[OppaSaranghae]

i don't know how other country problem can effect my country?
someone tell me 

[Trixbox]

i don't know how other country problem can effect my country?

someone tell me 

 

Your country's main trade partner or largest trade partner is US. US is second only to China when it comes to consumers so most of your goods are exported to the US for them to consume.

 

The world is collecting US Dollars as it's unofficial default currency for international exchange, any changes economically in the US will be felt by the world. This is why you always see other currencies against the US Dollar, not Euro or Pounds but Dollar.

[TinyKimLeader]

i don't know how other country problem can effect my country?

someone tell me 

Because one country is now interwined with others. In case of economy, the financial market (stock, bonds, commodities, forex) and the good market are interconnected. not only people from one country buying the stock, currency, and goods from their own country but also from other countries.

So in case of US that have big enough in terms of economy power in the world (or advanced economies country), its policy/problem can affect the other world. In simple case, US is a great importer country, so imagine if the country has problem of buying power, other countries that export their goods to US will suffer the lose as they buy less than usual.

Not to mention, USD is one of the world currency, means other countries use USD for trading their good, long story short, currency can affect the price of export/import goods. If X country use a lot of import goods, and the USD is high, the price of imported goods are increase, hence the X country needs to pay more or can only buy less

[spicey babe]

I laughed when I saw MXN hit low, such bitter and dark days the world is gonna face.

[demasta]

not surprised