Most Asia stocks up but Tokyo hit by Trump worries

Traders had hoped the real estate tycoon would flesh out some of his campaign promises such as tax cuts and infrastructure spending, but he gave very little away, fuelling uncertainty about his aspiration to boost the US economy.

Most Asia stocks up but Tokyo hit by Trump worries

World Bulletin / News Desk

Tokyo tumbled more than one percent Thursday, while the dollar sank as investors were left deflated by a lack of economic detail from Donald Trump at his first post-election press conference.

However, he did lash out at drugs companies for "getting away with murder" in offshoring production and overcharging, which in turn hammered the pharma sector across markets.

Trump also announced a plan to hand control of his business to his adult sons in a bid to avoid conflicts of interest, and angrily dismissed questions about his relationship with Russia and unsubstantiated claims Moscow has compromising information on him.

"Dealers were extremely discouraged by the lack of detail regarding the new administration’s economic plan, as the presser was more about extinguishing smouldering hot spots regarding conflict of interest and the Trump organisation's associations with Russia," Stephen Innes, senior trader at OANDA, said in a note.

The disappointment saw traders shift out of the dollar towards the yen, which in turn dragged on Tokyo's Nikkei. By the end of the day the index was down 1.2 percent. The dollar bought 114.40 yen.

The greenback has tumbled from highs around 118.60 yen touched in the wake of Trump's election win, which had fuelled hopes of a big-spending, tax-cutting programme to boost the economy and in turn fan inflation that would lead to interest rate hikes.

The dollar also retreated against the euro and pound as well as emerging market currencies with the Australian dollar up 1.3 percent and South Korean won one percent higher.

Güncelleme Tarihi: 12 Ocak 2017, 10:29
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