2024 Presidential Election: India, Japan Rally, China Muted, Hong Kong, Europe Slump As Trump Wins A Second Term

The U.S. market rallied out of the gates on Wednesday and rose to a record high, as the fate of the 2024 presidential election was sealed in favor of Republican candidate Donald Trump. The performances of the rest of the global markets, however, proved to be a mixed bag.

Asia Mixed: Japanese stocks led the gains in Asia as the export-heavy market rallied amid the yen’s weakness engendered by the dollar's strength. The greenback firmed up as the market began discounting a strong domestic economy under Trump.

The Invesco DB US Dollar Index Bullish Fund ($UUP), which is a way of tracking the value of the U.S. dollar against a basket of six major global currencies, was up 1.51% as of 12:30 pm ET.

At last check, the dollar was up 1.90% versus the yen.

The iShares MSCI Japan ETF ($EWJ), a measure of the Japanese market performance, edged down 0.22%.

The Indian market rallied, with the key benchmark - the Sensex, rising 1.13%. Domestic IT stocks led the gains as these companies derive a significant proportion of their revenue from the U.S. The iShares MSCI India ETF ($INDA) climbed 0.60% at the time of writing.

On the other hand, China’s Shanghai Composite Index moved about in a listless manner before ending marginally lower. Hong Kong’s Hang Seng Index slumped 2.23%.

Traders in mainland China and Hong Kong were wary of geopolitical tensions between the U.S. and China worsening under a Trump administration.

The iShares MSCI China ETF  ($MCHI) was plunging 2.34% to $49.83 at last check.

Europe On Backfoot: European stocks shrugged off a positive start and ended Wednesday’s session lower. The gains evaporated over the course of the session.

The Euro STOXX 50 Index, comprising 50 of the biggest Eurozone stocks, ended the day down 1.43%. The SPDR EURO STOXX 50 ETF ($FEZ), which tracks the index, was moving down 3.24%.

U.K.’s FTSE Index fell a modest loss of 0.07%.  

The iShares Core MSCI Europe ETF ($IEUR), which gives exposure to a broad range of European companies, was trading 2.56% lower.

The volatile performance underlined a lack of conviction among the market participants. In a note to the clients, Berenberg Bank chief economist Holger Schmieding  said, "Trump remains unpredictable and erratic. We thus cannot really gauge which of his often grandiose and not always consistent campaign promises he would actually implement.

The euro and pound weakened against the greenback.

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