Newscasts - Asia Markets Briefing: Investors start to price in a Trump victory
06/11/2024 09:10
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_bcy7rhq4&referenceId=1_bcy7rhq4&pageId=Newscasts Source: 'Reuters - Business videos' Description: The Trump Trade was in full effect during Wednesday's Asian trading, with a surging dollar weakening the Yen and boosting the Nikkei's exporters. Short Link: https://refini.tv/4ee9alv Video Transcript: Investors around the world start the price in a victory for Donald Trump. Welcome to Asia Markets Briefing. I'm Thomas Warner. The rising likelihood of a congressional sweep for the Republicans has put the Trump trade in full effect. The Dollar Index was set for its biggest one day rise since 2020, 10-year Treasury yields jumped to four-month highs, Bitcoin hit a new all-time record, and Wall Street futures were up across the board, lifted by the prospect of tax cuts and looser regulation. I will not rest until we have delivered the strong, safe and prosperous America that our children deserve and that you deserve. This will truly be the golden age of America. That's what we have to know. The effect on Asian markets was a mixed one though. Chinese stocks traded lower for most of Wednesday hit by concern that a Trump administration would mean more trade barriers. But the increasing strength of the Dollar weakened the Yen and gave the Nikkei's exporters a major lift. Its defense stocks also rose, given that Japan may now have to take more responsibility for its own security. Japan’s two biggest car makers actually reported earnings on Wednesday. Toyota Motors posted its first quarterly drop in profits in two years on Wednesday, ending a record bull run for the world's number one. It's been grappling with fierce competition from domestic players in the Chinese market. Shares in Honda, meanwhile, tanked 6% after it posted a surprise 15% drop in Q2 profits. Has also been losing ground in China. Chief Operating Officer Shinji Aoyama commented on the US election in the earnings call. He said that Honda would be badly affected, particularly by new US tariffs on Mexico, where the company does a lot of its manufacturing. And private equity firm KKR has acquired a 35% stake in Japanese software developer Fuji Soft. Rival’s Bain Capital had proposed a higher offer back in October, hoping to take the Japanese company private. But KKR now owns enough Fuji Soft shares to be able to block the bid. Over an India, food and grocery delivery firm at Swiggy opened its $1.4 billion IPO. But expects only modest demand from retail investors. It's already cut its hoped for valuation twice, with momentum for domestic stocks having cooled considerably. Mahindra & Mahindra reports on Thursday. Thursday should also bring Chinese trade data for October. Economists polled by Reuters expect year-on- year export growth of 5.4% last month, up from a 2.4% increase in September. Imports likely fell though 1.5% amid persistent concern about domestic demand. And finally, that strengthening US Dollar hit oil prices on Wednesday. They were down around $1.00 per barrel at last check. The longer-term impact of a Trump victory is less certain. His “drill-baby-drill†mantra could boost global supply, but any protectionist measures could also hit demand as well. And that's it from your Asia Markets Briefing