Markets come to grips with Donald Trump’s U.S. presidential win, attention has swiftly turned toward China, where hopes are mounting for an imminent fiscal stimulus package aimed at reviving sluggish economic growth. Investors are speculating that Beijing will soon unveil a significant set of measures to boost domestic demand, providing much-needed support to consumer and property sectors that rallied on Thursday. Traders are betting that China’s leadership will pivot toward bolstering local consumption to counterbalance any adverse effects of Trump’s re-election on global trade.
Meanwhile, the yen advanced in Asian trading after Japan’s top currency official, Atsushi Mimura, signaled that authorities would intervene if necessary to curb excessive currency volatility. This comes after the yen plunged roughly 2% on Wednesday in the immediate aftermath of Trump’s victory, fueling concerns about potential market instability.
The dollar index edged slightly lower in Asia, easing after a notable 1.3% surge on Wednesday. In bond markets, U.S. Treasury yields saw a slight dip, with the 10-year yield slipping one basis point to 4.42%, reflecting a momentary pause as traders adjust their expectations around fiscal and monetary policy implications under a renewed Trump administration.
Looking ahead, Federal Reserve officials are widely anticipated to lower the benchmark interest rate by 25 basis points at the conclusion of their two-day meeting, following a 50-basis-point cut in September. The Fed has also indicated an additional quarter-point reduction later this year, with projections signaling another 100 basis points of cuts in 2025. Oil markets remain in flux, with crude prices climbing in a choppy session as traders assess how Trump’s victory might influence energy policy and demand dynamics in the year ahead.