Asia stocks rebound in steep turnaround from Trump shock
On Thursday, Asian shares rebounded and the greenback firmed in a remarkable snapback from the shock of Republican Donald Trump's presidential win, although the speed of this reversal left some market watchers scratching their heads.
Outside Japan, MSCI's broadest index of Asia-Pacific stocks bounced 1.8% having tumbled 2.4% on Wednesday as global markets dropped on clues that Trump was already sweeping to power.
The Nikkei duly recouped all of Wednesday's 5% dip and it’s currently trading up 6% as the Japanese yen weakened following last session's leap.
Notwithstanding the steep election recoil in global markets initially, American investors opted to focus instead on Trump's key policy priorities, including generous tax cuts as well as higher infrastructure and defense spending, in addition to deregulation for banks.
Traders are currently puzzled with their quite emotional investment decisions. Yesterday, they were risk averse, then having seen that Americans were optimistic and also chasing the market higher, they immediately reversed their positions.