Asian Stocks Rise as Traders Regard Trump Win & the Fed – Asia Market Wrap

Asian stocks gained alongside their US counterparts as investors braced for a second Donald Trump presidency and an expected Fed interest rate cut.

Chinese markets rose sharply on expectations that Beijing will implement additional stimulus measures. The S&P 500 rose 2.5% Wednesday, its greatest post-election day in history, while the Nasdaq 100 rose 2.7%. The Fed is expected to lower its benchmark rate by a quarter percent on Thursday.

The surge in US stocks reflected anticipation that Trump’s policy plan of lower taxes and less regulation would benefit business profits. At the same time, Treasury 10-year yields rose 16 bps on Wednesday, with concerns that the president-elect’s budgetary policies and desire to raise tariffs will promote inflation and undermine the Fed’s ability to decrease interest rates.

Chinese markets opened lower but quickly rallied, with the CSI 300 Index rising as much as 2%. Consumer and real estate stocks rose as traders predicted that Beijing will shift its focus to increasing domestic demand to offset any negative impact from Trump’s return to the White House.

The Yen rose after Japan’s leading currency official, Mimura, stated that authorities will take appropriate action against excessive currency movements. The currency had fallen roughly 2% on Wednesday as the Dollar rallied.