Asian stock markets witnessed mayhem as the news of Republican candidate Donald Trump all set to walk the White House floated in. Donald Trump led the victory by winning 278 electoral votes against 218 by Hillary Clinton.
In a remarkable no-holds-barred U.S. election result, which has taken the world by storm, the Asian stock markets tumbled. The MSCI’s broadest index of Asia-Pacific stocks excluding Japan was down three percent and the Nikkei shaved off 5.4%. Not far behind, Indian stock market indices felt the election jitters as Sensex and Nifty plunged by almost three percent each. The election result tremors were also felt across South Korea and Hong Kong as the Kospi plunged 3.27%, while Hang Seng knocked down 3.57%.
Panic gripped Chinese shares as the Shanghai composite fell 1.32% and the Shenzhen composite tanked 1.39%.
Although the earlier U.S. elections did not elicit extreme volatility in the stock market and in the currencies, this time it is different. Donald Trump is a wild horse, and him winning the electoral race has shaken confidence within the investor community.
The risk of global economic and trade policy uncertainties gripped the stock markets and currencies across Asia, as the Trump win indicates the Federal Reserve is holding interest rates until the December review.
Fear gripped the markets as nervousness led to the plunging of shares and currencies, with central bankers expected to intervene and retain their sanity after the mayhem witnessed during the U.S. election.