“This outcome isn’t as bad as people think.”
Asian stocks are up today, following a tumble after Donald Trump clinched the presidency.
Japan’s Nikkei 225 index rebounded the highest, rising nearly 6% – almost cancelling out yesterday’s drop.
The velocity reflects a larger trend in global markets. The Mexican peso which reached an all time low yesterday has also recovered.
“There will be short-term volatility following the Trump victory but this is going to be short-lived, much like Brexit,” said Joshua Crabb, a Hong Kong-based analyst told Bloomberg. “This outcome isn’t as bad as people think. There’s going to be some tax cuts and fiscal stimulus. That would be good for corporate earnings and will be positive for equities.”
Speculators believe Trump will pursue business-friendly policies by increasing fiscal spending to spur economic growth.