Asia markets track global surge as Trump fears ease

Trading floors were awash in red Wednesday as the region's investors were the first to react to news that the firebrand tycoon had defeated market-favourite Hillary Clinton, upending expectations.
    However, a reassuring victory speech -- followed by calls by Clinton and President Obama to get behind Trump -- provided some encouragement to traders, sending risk assets rallying.
    Most markets in Asia either wiped out or clawed back most of the previous day's losses, while the dollar pushed higher.
    The greenback had come under pressure on worries that uncertainty over Trump's policies would cause the Federal Reserve to hold off an interest rate rise, but analysts said those worries had abated for now.
    Tokyo closed up 6.72 per cent, with a plunging yen also providing support. The dollar dallied with 106 yen before easing slightly, well up from Wednesday's low of 101.20 yen.
    In the afternoon Hong Kong gained 2.2 per cent and Shanghai was 1.3 per cent up. Sydney closed 3.3 per cent higher, Seoul jumped two per cent and Taipei put on 2.4 per cent.
    There were also gains of more than one per cent in Wellington, Singapore and Manila.
    
    'Friendly'
        
    CMC Markets strategist Michael McCarthy said it appeared a consensus was building that much of Trump's extreme rhetoric during the campaign "was a sales pitch rather than a commitment to act".
    "Investors ignored the potential for damage to international trade and growth prospects and focused on Republican control of both houses of Congress as well as the White House," he said.
    "This offers the prospect of reform that could stimulate the US economy."
    And Grant Williamson, an investment adviser at brokerage Hamilton Hindin Greene in Christchurch, New Zealand, told Bloomberg News: "He'll certainly be friendly to American business and that could very well stimulate their economy."
    The push back into higher-yielding, or riskier, investments also saw safe-haven gold tumble 1.3 per cent, buying $1,286.56 -- having spiked Wednesday at almost $1,340.
    The Mexican peso, which hit a record low 20.78 against the dollar on Trump's win, also strengthened Thursday but it remains under pressure owing to fears about Trump's policy plans.
    While on the campaign trail the president-elect often made anti-Mexican promises including a pledge to remove undocumented immigrants, build a border wall and tear up a long-standing trade deal.
    Despite the rally Thursday, Daisuke Karakama, market economist at Mizuho Bank, sounded a note of caution.
    He said that while there is talk Trump's plans for large fiscal spending and tax cuts could boost the economy and dollar, that was only the positive scenario.
    "There are no resources to finance his tax cuts and there was no guarantee that he could get along with Congress given the divide between him and mainstream Republicans," he told AFP.
    
    Key figures around 0600 GMT 
        
    Tokyo - Nikkei 225: UP 6.7 per cent at 17,344.42 (close)
    Hong Kong - Hang Seng: UP 2.2 per cent at 22,896.26
    Shanghai - Composite: UP 1.3 per cent at 3,169.34
    Dollar/Mexican peso: UP at 19.79 pesos from 19.82 pesos
    Pound/dollar: UP at $1.2425 from $1.2424 Tuesday
    Euro/dollar: UP at $1.0941 from $1.0914
    Dollar/yen: DOWN at 105.44 yen from 105.72 yen
    Oil - West Texas Intermediate: DOWN 26 cents at $45.01 per barrel
    Oil - Brent North Sea: DOWN 13 cents at $46.23
    New York - Dow: UP 1.4 per cent at 18,589.84 (close)
    London - FTSE 100: UP 1.0 per cent at 6,911.84 (close)