--- title: "Asian stocks lose direction as Trump win digested: markets wrap" description: "Asia’s benchmark stock index swung between gains and losses as investors weighed the ramifications of a second Trump presidency, with its promise of steeper tariffs." type: "NewsArticle" publisher: "Daily Maverick" site: "https://www.dailymaverick.co.za" section: "Newsdeck" author: "Bloomberg" author_url: "https://www.dailymaverick.co.za/author/bloomberg/" canonical_url: "https://www.dailymaverick.co.za/article/2024-11-07-asian-stocks-lose-direction-as-trump-win-digested-markets-wrap/" published: "2024-11-07T05:31:38" updated: "2024-11-07T07:17:39" lang: "en-ZA" word_count: 515 --- # Asian stocks lose direction as Trump win digested: markets wrap > Asia’s benchmark stock index swung between gains and losses as investors weighed the ramifications of a second Trump presidency, with its promise of steeper tariffs. By Bloomberg · Published 7 November 2024, 07:31 SAST · Updated 7 November 2024, 09:17 SAST ## Key points - As global markets juggle the aftershocks of Trump's electoral victory like a circus act on a tightrope, Hong Kong and China celebrate gains while Australia and South Korea take a tumble, all amidst whispers of impending interest rate cuts and a currency war that has the yen and yuan playing a dangerous game of chicken. - Asian equity markets showed mixed results: gains in Hong Kong and China contrasted with declines in Australia and South Korea following a significant surge in US stocks post-election. - The S&P 500's rally is driven by expectations of a Trump-led agenda favoring tax cuts and deregulation, despite rising Treasury yields signaling inflation concerns. - China's CSI 300 Index rebounded after initial losses, as Trump’s tariff promises on Chinese goods loom large, while the yuan's reference rate hits its lowest since late 2023. - The Federal Reserve is anticipated to cut interest rates again, with global central banks on high alert regarding potential economic impacts from Trump's presidency. ## Content Equity gauges rose in Hong Kong and China, while dropping in Australia and South Korea. That was after the S&P 500 surged 2.5% on Wednesday, its [best](https://www.bloomberg.com/news/articles/2024-11-05/stock-market-today-dow-s-p-live-updates) post-election day in history and the Nasdaq 100 advanced 2.7%. The Federal Reserve is forecast to cut interest rates on Thursday. The gains for US stocks reflected expectations that a Trump policy agenda favouring lower taxes and less regulation may support corporate profits. At the same time, Treasury 10-year yields surged 16 basis points on Wednesday on expectations that his fiscal plans and proposal to hike tariffs will drive inflation higher and erode the ability of the Fed to trim borrowing costs. China’s benchmark CSI 300 Index swung to a gain Thursday after dropping as much as 1% at the open. Trump has pledged to introduce tariffs on Chinese goods to support US manufacturing. “I think now the world has to be seen through the kind of lens of Trump effectively and the kind of zero sum game and the bilateral way that he approaches foreign relations,” Kyle Rodda, a senior market analyst at Capital.Com Inc., said on Bloomberg Television. “China isn’t looking quite as strong subsequently, those trades are likely to continue to manifest, at least for the time being. Again, it’s all a part of that Trump thematic.” The yen edged higher on Thursday after Japan’s chief currency official Atsushi Mimura said the authorities will take appropriate action against excessive currency moves. The currency had tumbled about 2% on Wednesday following Trump’s victory. Treasury 10-year yields slipped one basis point in Asia to 4.42%. China lowered its [daily reference rate](https://www.bloomberg.com/news/articles/2024-11-07/china-cuts-yuan-fix-to-weakest-since-2023-greenlighting-decline) for the yuan to the lowest since late 2023, a sign the central bank is allowing depreciation after a surge in the dollar pummelled the currency. Fed officials are widely expected to lower their benchmark rate by a quarter percentage point, a move that will come on the heels of the half-point cut in September. They have projected one more quarter-point reduction this year, in December, and an additional full point of reductions in 2025, according to the median estimate released in September. “The Fed is still likely to cut by 25 basis points at Thursday’s meeting and likely to cut again in December,” said Yung-Yu Ma at BMO Wealth Management. “As we move into 2025, we believe it’s possible that we only see two or three cuts for the year depending on the mix of policy and growth that plays out.” Central bankers the world over are [gauging](https://www.bloomberg.com/news/articles/2024-11-06/trump-win-wreaks-havoc-with-rate-cut-expectations-around-world) whether their worst fears over Trump will come to pass following his resounding return to the US presidency. Wall Street’s “fear gauge” — the VIX — tumbled Wednesday by the most since August. Almost 19 billion shares changed hands on US exchanges, 63% above the daily average in the past three months. Bitcoin, viewed by many as a so-called Trump trade after he embraced digital assets during his campaign, slipped early Thursday after hitting a record high the day before. In commodities, oil [steadied](https://www.bloomberg.com/news/articles/2024-11-06/latest-oil-market-news-and-analysis-for-nov-7) after a roller-coaster session on Wednesday. Gold edged lower for a second day.