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Nov 9, 2016

Asian Markets at Open Report: Asia Markets Jumps at Open; Nikkei Rockets Almost 6% in Early Trade

Aza Wee Sile
Yuya Shino | Getty Images

Australia's ASX and Japan's Nikkei soared in early trade, as traders digested the prospect of a U.S. President Donald Trump.

"Donald Trump's presidential win will no doubt be at the center of investors' minds today with many pondering whether the incumbent president's bite will be as extreme as his bark," Rodrigo Catril, FX strategist at National Australia Bank, said in a note on Thursday.
Japan's Nikkei 225 opened up 1.91 percent before quickly climbing to a 5.77 percent rise, as the yen weakened against the dollar, trading at 105.83 as of 8:01 am HK/SIN. The dollar/yen had plunged to 101 levels on Wednesday.

The Australian benchmark index soared 2.97 percent, underpinned by its energy subindex, up 3.22 percent, and the materials subindex, up 5.28 percent. The gold subindex shed 6.92 percent.
New Zealand's NZX 50 climbed 2.16 percent, after The Reserve Bank of New Zealand cut rates by 25 basis points to a record low of 1.75 before the market opened. The RBNZ statement warned that "numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust according."
In South Korea, the Kospi gained at the open, trading up 1.51 percent before paring to trade up 1.46 percent.
On Wednesday, Asian shares, which traded as U.S. election poll results trickled in, tumbled as it became increasing apparent that Republican candidate was leading the race for the White House.
European stocks closed sharply higher, after opening with significant losses, while on Wall Street, U.S. stocks rose more than 1 percent, even though futures had plunged as the polls came in during the night in the U.S.
The Dow Jones industrial average ended up 1.4 percent at 18,589.69, while the S&P 500 closed up 1.11 percent at 2,136.26. The Nasdaq composite finished up 1.11 percent at 5,251.07.
"The rancor of the U.S. election campaign appeared to evaporate after conciliatory concession and acceptance speeches from the candidates," Michael McCarthy, chief market strategist at CMC Markets, said in a note on Thursday. "In one of the most extraordinary trading sessions ever, Dow futures went from more than 800 points deficit to close 247 points higher."
During Asian trade, U.S. crude futures slipped 0.07 percent to $45.24 a barrel, after settling at $45.27 in the U.S. Wednesday session. Brent futures had settled up 0.7 percent, at $45.27 on Wednesday.
Crude oil recouped earlier losses of nearly 4 percent on Wednesday, as markets recovered from an initial shock of Trump's victory.
On the economic data front, Australia will announce its September housing finance figures on Thursday, while Japan will report September machinery orders and the Philippine central bank's decision is due.