Asian markets boosted by FBI Clinton announcement

The former secretary of state is considered by most investors to be a safer bet than Trump

AFP, HONG KONG:  Asian equities staged a rebound and the Mexican peso rallied yesterday as traders breathed a sigh of relief after the FBI chief said market favourite Hillary Clinton would not face charges over her use of a private email server.
Investors were sent into a funk last week after James Comey said messages linked to the Democratic presidential nominee were being investigated, sending rival Donald Trump surging in opinion polls just days before the November 8 vote.
The former secretary of state is considered by most investors to be a safer bet than Trump, who is seen as loose cannon with policies many 
fear could wreck the world’s top economy.
However, Comey on Sunday announced he would not change his July recommendation that Clinton not be prosecuted for allegedly putting US secrets at risk.
“Markets are likely to remove some of the risk premium taken as a precaution against a Trump victory now that Hillary Clinton will not be charged over her use of a private email server,” said CMC Markets chief analyst Ric Spooner.
“However, an element of uncertainty remains over this election. It seems unlikely that markets will make a full ‘risk on’ move until Clinton is declared the winner.”
Mexican peso rallies 
Tokyo’s Nikkei ended 1.6 per cent  higher while Hong Kong closed up 0.7 per cent , with banking giant HSBC more than two per cent  higher after it reported a forecast-beating rise in pre-tax profit.
Shanghai closed up 0.3 per cent, Sydney added 1.4 per cent  and Seoul gained 0.8 per cent , while Wellington soared 2.4 per cent  and Singapore put on 0.5 per cent .
In early European trade London and Paris each jumped 1.6 per cent  and Frankfurt put on 1.4 per cent.
Futures on Wall Street also rallied, with the broad-market S&P 500 and Dow each more than one per cent higher.
The news also provided strong support for the Mexican peso, which soared more than two per cent against the dollar Monday, having been battered last week.
The peso is considered a proxy for Trump’s chances because of his anti-Mexican rhetoric throughout the campaign—including his pledge to remove undocumented migrants, build a border wall and tear up a trade deal.
Also helping stocks was a solid US October jobs report which gave the Federal Reserve fresh ammunition to raise rates in December, while the bank’s vice chair Stanley Fischer said the labour market was in a “powerful” recovery and inflation was picking up.
The dollar rallied on the FBI news, breaking back above 104 yen while also ticking back up against the pound.
Sterling surged last week after Thursday’s London court ruling that the British government would need parliamentary approval to officially move to pull out of the European Union.
The pound pushed above $1.25 to its highest level in a month but eased Monday.

Asian markets boosted by FBI Clinton announcement

The former secretary of state is considered by most investors to be a safer bet than Trump

AFP, HONG KONG: Asian equities staged a rebound and the Mexican peso rallied yesterday as traders breathed a sigh of relief after the FBI chief said market favourite Hillary Clinton would not face charges over her use of a private email server. Investors were sent into a funk last week after James Comey said messages linked to the Democratic presidential nominee werebeing investigated, sending rival Donald Trump surging in opinion polls just days before the November 8 vote. The former secretary of state is considered by most investors to be a safer bet than Trump, who is seen as loose cannon with policies many fear could wreck the worldstop economy. However, Comey on Sunday announced he would not change his July recommendation that Clinton not be prosecuted for allegedly putting US secrets at risk. Markets are likely to remove some of the risk premium taken as a precaution against a Trumpvictory now that Hillary Clinton will not be charged over her useof a private email server, saidCMC Markets chief analystRic Spooner. However, an element of uncertainty remains over this election. It seems unlikely that markets will make a full risk on move until Clinton is declared the winner. Mexican peso rallies Tokyos Nikkei ended 1.6 per cent higher while Hong Kong closed up 0.7 per cent , with bankinggiant HSBC more than twoper cent higher after it reported a forecast-beating rise in pre-tax profit. Shanghai closed up 0.3 per cent, Sydney added 1.4 per cent and Seoul gained 0.8 per cent , while Wellington soared 2.4 per cent and Singapore put on 0.5 per cent . In early European trade London and Paris each jumped 1.6 per cent and Frankfurt put on 1.4 per cent. Futures on Wall Street also rallied, with the broad-market SP 500and Dow each more than one per cent higher. The news also provided strong support for the Mexican peso, which soared more than two per cent against the dollar Monday, having been battered last week. The peso is considered a proxy for Trumps chances because of his anti-Mexican rhetoric throughout the campaignincluding his pledge to remove undocumented migrants, build a border wall and tear up a trade deal. Also helping stocks was a solid US October jobs report which gave the Federal Reserve fresh ammunition to raise rates in December, while the banks vice chair Stanley Fischer said the labour market was in a powerful recovery and inflation was picking up. The dollar rallied on the FBI news, breaking back above 104 yen while also ticking back up against the pound. Sterling surged last week after Thursdays London court ruling that the British government would need parliamentary approval to officially move to pull out of the European Union. The pound pushed above $1.25 to its highest level in a month but eased Monday.