Hong Kong (AFP) – Wall Street hit a record high on Thursday as most world markets extended gains on hopes Donald Trump’s plan to kickstart the US economy will succeed.
Tokyo surged nearly seven percent as Asian markets caught up with a post-election rally elsewhere and European bourses mostly built on Wednesday’s upturn except for London, a touch lower after running into profit-taking.
“Financial markets have swiftly reassessed Trump’s win, embracing it with bullish gusto,” said Mike van Dulken, head of research at Accendo Markets.
The dollar firmed after sliding Wednesday on worries that uncertainty over Trump’s policies would cause the Federal Reserve to hold off an interest rate rise.
Haven currency the yen was a big loser Thursday, slumping to a 3.5-month low at 106.43 yen to the dollar.
“Perception now is that the controversial multi-billionaire TV presenter and property mogul could be good for business; and talk of tax cuts and heavy spending on infrastructure would certainly be good for growth,” said Lee Wild, head of equity strategy at stockbroker Interactive Investor.
World stock markets have recovered from a sharp initial downturn to Trump’s win, with Europe’s leading indices gaining up to 1.6 percent on Wednesday.
Why, it’s as if, despite initial freakouts, upon reflection, rationality ultimately ends up prevailing…