Asian stocks are shaky as Trump bets keep emerging markets weighed
On Monday, Asian shares were on the defensive, undermined by concerns that the strength in the American currency as well as ascending US bond revenues since Donald Trump's election to president could potentially accelerate fund outflows from emerging markets.
Outside Japan, MSCI's broadest dollar-based index of Asia-Pacific shares sagged 0.1%, staying close to four-month minimums. In local currency terms, a great number of markets are up moderately.
Japan's Nikkei ascended 0.5%to reach a 10-1/2-month peak due to a weaker yen.
Trump's unexpected election win has provoked a major reprising of assets, with traders rushing to purchase American stocks and the greenback, while dumping bonds as well as emerging market assets.
Carrying out even some of Trump's plans for deregulation and also tax cuts would undermine assumptions traders had long held that the American economy would surge moderately and inflation would remain tame in the foreseeable future.