Asian share markets were broadly higher Monday, with the dollar surging after the U.S. Federal Bureau of Investigation stood by its earlier decision not to recommend charges against Demoratic presidential hopeful Hillary Clinton.
Japan’s Nikkei Stock Average NIK, +1.61% ended up 1.6%, while Korea’s Kospi SEU, +0.79% gained 0.8% and Australia’s S&P/ASX 200 XJO, +1.35% closed 1.4% higher. Hong Kong’s Hang Seng Index HSI, +0.70% gained 0.7%.
Meanwhile, the dollar USDJPY, +1.30% rose to ¥104.46 against the yen following the news of the FBI decision, up from ¥103.37 earlier. The gains partially reversed the dollar’s weakness against the Japanese currency over the past week, following FBI Director James Comey’s earlier letter to Congress saying the bureau had uncovered new evidence it believed was related to the email server.
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“With the email issue now put to bed, at least for now, it is clearly favorable for Clinton’s chances at the election,” said Ray Attrill, global head of currency strategy at National Australia Bank.
Equity markets rallied, in a sign that stock investors believe a victory for Clinton over her Republican rival Donald Trump in Tuesday’s election is now more likely.
The latest Wall Street Journal/NBC News poll found that 44% of likely voters support Mrs. Clinton, while 40% support Mr. Trump. Mrs. Clinton’s 4-point lead is less than half the 11-point edge she enjoyed in a mid-October poll.
A victory for the Democrats Tuesday is expected to be less disruptive for markets and therefore more supportive of an increase in U.S. interest rates in December.
In Japan, electronics and automotive stocks were leading gains. Sumitomo Mitsui Trust 8309, +2.71% as up 2.7%, while Mitsubishi Electric 6503, +2.01% gained 2.0%, and Nissan Motor 7201, +1.73% rose 1.7%.
Nickel futures were up 4.5% at $10,930 per metric ton, while copper futures were up 1.5% at $5,067 per ton Monday, leading gains in base metals across the board as risk appetite improved.
“The investment sentiment in metals has improved after the FBI director’s statement,” said Gnanasekar Thiagarajan, director of Commtrendz Risk Management. He said that concerns about potential nickel supply snags from the Philippines have also impacted the metal.
Investors, though, will likely remain wary due to the U.S. elections this week, after a campaign that has proven to be highly unpredictable.
“We could see a period of high drama before we get the announcement” of a winner or even after that, said Chris Weston, chief market strategist at IG. “The playbook is so diverse you don’t know how to trade this,” he said.
In Hong Kong, key property stocks tumbled after the city’s government late Friday imposed fresh measures—including an increase in transaction taxes—to cool the city’s home property market.
Of the developers, Cheung Kong Property Holdings 1113, -8.81% was down 8.8%, Sun Hung Kai Properties 0016, -9.88% was off 9.9% and New World Development 0017, -9.03% lost 9.0%.
Shares of HSBC HSBA, +4.81% HSBC, -0.16% extended gains in the afternoon session in Hong Kong, despite the U.K. banking giant posting a third-quarter net loss of $204 million, reversing from a year-earlier profit of $5.23 billion. The stock gained 3.0% on a better-than expected adjusted pretax profit of $5.59 billion.
Looking ahead, economic data for China scheduled to be released this week, including trade figures, will be closely watched by the Asian market, say traders.
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NIK
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HSI
+158.78 +0.70%
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Anthony Pervan 6 hours ago
You mean there never was a server in Hillary's shower or barn or basement or under her toilet? Well, actually there was. So, what was its purpose? Why did Obama lie about knowing of its existence? Explain that Comey. (Note: Common sense tells us what the server's purpose was; concealing pay for play.)
100 million new emails could have been discovered and Comey would not charge Clinton.
How do I know this? Because the original pile of emails (even without the destroyed evidence) were enough to bring charges. So, why would more evidence change his politicized decision.
Thankfully, five non-Washington FBI Offices are investigating the Clintons and their self-serving charity.
But we do not even need the FBI. WIKILEAKS and PROJECT VERITAS allow us to view the unlawfully obtained TRUTH about the Clintons.
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Alexand Roetger 5 hours ago
@Anthony Pervan As long as we're guessing, I'd be more interested in Trump's tax returns. Too bad he's hiding them. Makes people suspicious.
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Anthony Pervan 5 hours ago
@Alexand Roetger @Anthony Pervan
Hiding what?
The IRS has audited Trump's taxes for each of the last 18 years. Has he been arrested?
Do you have a difficult time sleeping? Reading Trump's taxes or mine would put you to sleep.
Look what was created when the unlawfully released TRUTH about a fraction of Trump's taxes was released. Trump complied with the tax code and was attacked in headlines for a week for LAWFULLY applying net operating losses!
With respect to Hillary, we are not "as long as we're guessing": she lied to Congress, had an unsecured server in her basement (how dumb is that), a hammer was taken to 13 cell phones after a subpoenaed was issued (who does that? someone with a guilty conscience), and hired BleachBit.
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Anthony Pervan 5 hours ago
@Alexand Roetger @Anthony Pervan
Alexand: I am not trying to dissuade you from voting for Hillary. Be my guest. You have millions and millions who will be joining you. You folks could well be in the majority. As Hillary stated: If you liked the last eight years, vote for me. As Obama consultant Jonathan Gruber stated: We seek the support of the stupid.
As for me? I voted for Obama in 2008 and have now seen "more than enough."
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mark gess 6 hours ago
The FBI didn't 'clear' Hillary of anything. All they said was that they weren't going to bring charges against her. Big difference.
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K - Kos 6 hours ago
This article shows that the markets are clearly rigged. If anything, markets would jump with the beast behind bars, not skating free. Another bias piece. Ridiculous.
Wake up, America!
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Anthony Pervan 5 hours ago
@K - Kos My guess: The futures are way up at this time. My guess: By 11-7-2016, 4 PM EST, the NYSE will be down.
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