Afp Business Asia

Asian equities mostly rose Thursday, while the dollar held gains and bitcoin hit a fresh record as markets try to ascertain the consequences of a second Donald Trump presidency after he pledged to cut taxes and ramp up tariffs with an eye on China.The Trump Trade went into overdrive Wednesday as it emerged the tycoon would return to the White House after beating Democrat Kamala Harris, while his Republican Party gained control of the Senate and looked set to hold the House of Representatives.The decisive win is expected to pave the way for a series of business-friendly measures such as tax cuts and deregulation, though analysts warn that such moves — along with the pledge to impose duties on imports — could relight inflation.The prospect of higher inflationary pressure could complicate matters for Federal Reserve boss Jerome Powell as he tries to guide the economy to a soft landing while bringing prices under control. The central bank is expected to announce a 25-basis-point interest rate reduction on Thursday, but there are now questions over the chances of another next month, and the outlook for the new year.”Those discussions might have to wait (until) a subsequent meeting and encompass four issues,” said National Australia Bank’s Tapas Strickland.”Does the election result lead to meaningful changes for economic demand or inflation that warrant a different policy path?; have jitters about job-market deterioration been overstated?; where is inflation headed?; and what is the right level for rates, anyway?”Still, economists at Citi wrote in a client note ahead of Election Day: “The December rate cut decision will depend on labor market data and we expect a further softening to lead to a 50-basis-point rate cut.”With Trump expected to once again set his sights on trade, observers said that will be a key issue for Asian governments, and particularly China after Washington and Beijing butted heads on numerous occasions during his first term.”The primary concern will be around tariffs and trade restrictions, which will have some impact but have been somewhat factored in,” said Joshua Crabb and Colin Graham at asset manager Robeco.”The offset to this will likely be a more aggressive policy response in Asia, both fiscally and monetarily. “The first indication of this will be stimulus in China, with the (National People’s Congress) scheduled to finalise on 8 November.”Traders are awaiting the end on Friday of a Chinese government meeting to hammer out a stimulus for the world’s number two economy, with expectations for hundreds of billions of dollars to help local authorities and support for banks to boost lending.Hopes for a pick-up in growth were boosted Thursday by data showing a forecast-busting jump in exports for October — hitting a more than two-year high — that offset more below-par import figures.The news comes after Beijing started unveiling a raft of support measures in September aimed at bringing the post-Covid economic malaise to an end.After a mixed day on Wednesday, Asian stock investors fought to push markets up.The latest readings out of China and hopes for more policy support pushed Shanghai more than two percent higher and Hong Kong more than one percent higher.There were also gains in Sydney, Singapore, Seoul, Taipei and Bangkok.Tokyo pared morning losses to end slightly lower, with Wellington, Manila, Mumbai and Jakarta also off.The broad gains came after a blockbuster day on Wall Street, where all three main indexes hit new highs, led by a 3.6 percent spike in the Dow.On currency markets, the dollar held its gains against its peers after surging on the back of Trump’s victory as rate cut bets are pared back and Treasury yields rise.Bitcoin touched a new high just above $76,475 on optimism about the outlook for cryptocurrencies after the president-elect said on the campaign trail that he would make the United States the “bitcoin and cryptocurrency capital of the world”.- Key figures around 0710 GMT -Tokyo – Nikkei 225: DOWN 0.3 percent at 39,381.41 (close)Hong Kong – Hang Seng Index: UP 1.7 percent at 20,894.36Shanghai – Composite: UP 2.6 percent at 3,470.66 (close)Dollar/yen: DOWN at 154.07 yen from 154.62 yen on WednesdayEuro/dollar: UP at $1.0747 from $1.0732Pound/dollar: UP at $1.2932 from $1.2880Euro/pound: DOWN at 83.10 pence from 83.30 penceWest Texas Intermediate: UP 0.3 percent at $71.91 per barrelBrent North Sea Crude: UP 0.4 percent at $74.24 per barrelNew York – Dow: UP 3.6 percent at 43,729.93 (close)London – FTSE 100: DOWN 0.1 percent at 8,166.68 (close)

Asian equities fluctuated Thursday, while the dollar held gains and bitcoin hit a fresh record as markets try to ascertain the consequences of a second Donald Trump presidency after he pledged to cut taxes and ramp up tariffs with an eye on China.The so-called Trump Trade went into overdrive Wednesday as it emerged that the tycoon would return to the White House after beating Democrat Kamala Harris, while his Republican Party gained control of the Senate and looked set to hold onto the House of Representatives.The decisive win is expected to pave the way for a series of business-friendly measures such as tax cuts and deregulation, though analysts warn that such moves — along with the pledge to impose duties on imports — could relight inflation.The prospect of higher inflationary pressure could complicate matters for Federal Reserve boss Jerome Powell as he tries to guide the economy to a soft landing while bringing prices under control. The central bank is expected to announce a 25-basis-point interest rate reduction on Thursday, but there are now questions over the chances of another next month, and the outlook for the new year.”Those discussions might have to wait (until) a subsequent meeting and encompass four issues,” said National Australia Bank’s Tapas Strickland.”Does the election result lead to meaningful changes for economic demand or inflation that warrant a different policy path?; have jitters about job-market deterioration been overstated?; where is inflation headed?; and what is the right level for rates, anyway?”Still, economists at Citi wrote in a client note ahead of Election Day: “The December rate cut decision will depend on labor market data and we expect a further softening to lead to a 50-basis-point rate cut.”After a mixed day on Wednesday, Asian stock investors continued to tread carefully.Tokyo edged down with Hong Kong, Sydney, Seoul, Wellington and Manila, but Shanghai, Singapore and Taipei rose.That came after a blockbuster day on Wall Street, where all three main indexes hit new highs, led by a 3.6 percent spike in the Dow.With Trump expected to once again set his sights on trade, observers said that will be a key issue for Asian governments, and particularly China after Washington and Beijing butted heads on numerous occasions during his first term.”The primary concern will be around tariffs and trade restrictions, which will have some impact but have been somewhat factored in,” said Joshua Crabb and Colin Graham at asset manager Robeco.”The offset to this will likely be a more aggressive policy response in Asia, both fiscally and monetarily. “The first indication of this will be stimulus in China, with the (National People’s Congress) scheduled to finalise on 8 November.”Traders are awaiting the end on Friday of a Chinese government meeting to hammer out a stimulus for the world’s number two economy, with expectations for hundreds of billions of dollars to help local authorities and support for banks to boost lending.On currency markets, the dollar held its gains against its peers after surging on the back of Trump’s victory as rate cut bets are pared back and Treasury yields rise.Bitcoin touched a new high just above $77,475 on optimism about the outlook for cryptocurrencies after the president-elect said on the campaign trail that he would make the United States the “bitcoin and cryptocurrency capital of the world”.- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.4 percent at 39,321.87 (break)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 20,525.33Shanghai – Composite: UP 0.2 percent at 3,391.22Dollar/yen: DOWN at 154.40 yen from 154.62 yen on WednesdayEuro/dollar: DOWN at $1.0727 from $1.0732Pound/dollar: UP at $1.2889 from $1.2880Euro/pound: DOWN at 83.23 pence from 83.30 penceWest Texas Intermediate: UP 0.4 percent at $71.96 per barrelBrent North Sea Crude: UP 0.5 percent at $74.29 per barrelNew York – Dow: UP 3.6 percent at 43,729.93 (close)London – FTSE 100: DOWN 0.1 percent at 8,166.68 (close)

Canada said Wednesday it is shutting down TikTok’s offices in the country following a security review, but people will still be allowed to use the popular video-sharing app.”The government is taking action to address the specific national security risks related to ByteDance Ltd.’s operations in Canada,” Francois-Philippe Champagne, minister of innovation, science and industry, said in a statement.Ottawa is not imposing restrictions on Canadian users of TikTok, which has come under scrutiny for its ownership under China-based ByteDance. “The decision to use a social media application or platform is a personal choice,” Champagne said.Canada banned TikTok from all government devices last year and launched a security review of the application.Champagne said Wednesday’s decision was made in accordance with a law that “allows for the review of foreign investments that may be injurious to Canada’s national security.”TikTok said it would challenge the decision in court.”Shutting down TikTok’s Canadian offices and destroying hundreds of well-paying local jobs is not in anyone’s best interest,” said a spokesperson. “We will challenge this order in court.”A cyber expert at the University of Ottawa, Michael Geist, said “there may well be good reasons” to ban the app but warned the move could be counterproductive.”Banning the company rather than the app may actually make matters worse since the risks associated with the app will remain but the ability to hold the company accountable will be weakened,” Geist wrote in an online post.TikTok also faces a ban in the United States if it remains owned by ByteDance — a threat the company is battling in a federal appeals court, arguing that it violates free speech rights. The US government alleges that TikTok allows Beijing to collect data and spy on users. It also says the platform is a conduit to spread propaganda. China and the company strongly deny these claims.

Ottawa said Wednesday it is shutting TikTok’s operations in Canada following a security review, but Canadians will still be allowed to use the popular video sharing app.”The government is taking action to address the specific national security risks related to ByteDance Ltd.’s operations in Canada,” Francois-Philippe Champagne, minister of innovation, science and industry, said in a statement.Ottawa is not imposing restrictions on Canadian users of TikTok, which has come under scrutiny for its ownership under China-based ByteDance. “The decision to use a social media application or platform is a personal choice,” Champagne said.Canada banned TikTok from all government devices last year and launched a security review of the application.Champagne said Wednesday’s decision was made in accordance with a law that “allows for the review of foreign investments that may be injurious to Canada’s national security.”A cyber expert at the University of Ottawa, Michael Geist, said “there may well be good reasons” to ban the app but warned the move could be counterproductive.”Banning the company rather than the app may actually make matters worse since the risks associated with the app will remain but the ability to hold the company accountable will be weakened,” Geist wrote in an online post.TikTok also faces a ban in the United States if it remains owned by ByteDance — a threat the company is battling in a federal appeals court, arguing that it violates free speech rights. The US government alleges that TikTok allows Beijing to collect data and spy on users. It also says the platform is a conduit to spread propaganda. China and the company strongly deny these claims.

Donald Trump’s election as US president brings back a champion of the oil industry to the White House, but experts warn that his push for low prices could be at odds with petroleum companies’ priorities. On the campaign trail, Trump repeatedly said he would “unleash” the US oil sector by boosting production and curbing the move towards renewable energy pushed by outgoing president Joe Biden. “We will have an administration that will work with the US oil and gas industry and not disparage them by calling them war profiteers or price gougers like they were called by Biden,” said Andy Lipow of Lipow Oil Associates.”I will lower the cost of energy,” Trump said at the Republican National Convention. “We will drill, baby, drill.”The president-elect’s vow to press for aggressive oil and gas development is, however, something experts say is not the main priority of a sector that has been criticized in the past for not carefully investing capital.”Producers have plenty of acreage they’re sitting on that they could be drilling, and some of it they’re drilling, but they’re also trying to placate their shareholders,” said Stewart Glickman of CFRA Research. “And the shareholders want dividends and buybacks just as much as they want volume growth.”A significant increase in output — already at record highs — risks glutting the market depending on how medium-term demand evolves in places like China, where the economic outlook is uncertain.”The problem is the capital markets,” said Bill O’Grady of Confluence Investment Management. “Investors don’t want them to do that (raise production) because they want to get paid.”Higher output could add to downward pressure on oil prices at a time when the strong dollar is also expected to weigh on the commodity.- Pressure to produce -US oil output began heading significantly higher in the 2010s with the emergence of shale production, but the domestic industry has faced obstacles along the way.With shale booming, Saudi Arabia opened the spigots enough to send crude prices down to $26 a barrel in 2016.That tumble in prices reverberated through the oil industry, leading to multiple bankruptcies.Darren Woods, chief executive of ExxonMobil, said last week that industry investment is more influenced by its drive for profitability than regulatory questions.”I don’t think the level of production in the US is being constrained by external restrictions,” Woods said. “I think it is being driven by the internal discipline of the industry.”Glickman expressed skepticism that Trump would alter the industry’s approach to investment, which is to only boost drilling when higher oil prices call for it.But O’Grady said the administration will push to bring crude prices lower, perhaps to between $50 to $60 a barrel, leading to lower gasoline prices.”I suspect they’re going to figure out a way to get what they want and produce more and bring down the price,” O’Grady said. “The industry doesn’t necessarily want that, but they may not have a whole lot of choice.”Another source of unease in the sector is Trump’s confrontational approach on trade, which could lead to higher tariffs, particularly on items from China.Tariff hikes discussed by the president-elect “would likely trigger slower economic growth both in the US and globally, reducing demand for liquid fuels, driving down oil prices, and ultimately affecting the refining industry,” said Wood Mackenzie, an energy data analytics company.The industry does, however, stand poised to benefit from Trump’s expected retreat from energy transition investments favored by the Biden administration.”There is a case to be made for oil prices going higher” over the medium term, according to Glickman.

Wall Street rallied into record territory, the dollar soared and bitcoin scaled a new peak Wednesday as the world gears up for another Donald Trump presidency.The Republican candidate made a stunning political comeback as he defeated Vice President Kamala Harris to return to the White House, four years after losing it to Joe Biden.All three major US indices finished at records, led by the Dow, which soared 3.6 percent.”The rationale behind the US stock market rally is that Trump is seen as business-friendly and will be able to pass his tax cuts through easily without much resistance from the Democrats who have lost control of the Senate,” said City Index and FOREX.com analyst Fawad Razaqzada.”The reaction today is just the fact that it was a clean sweep … winning the election, the electoral vote, the popular vote, the Senate, and looking like they’ll retain the House as well,” said Aaron Clark, equity portfolio manager at GW&K Investment Management. “The market’s clearly on a sugar high.”Markets are also applauding the clarity of Tuesday’s results, said Jason Schenker of Prestige Economics.”A swift and decisive outcome reduces the risks of protracted uncertainty, political violence, recession risks, and even geopolitical spillover that could have accompanied presidential election outcome uncertainty,” he said.Among the biggest winners were financial heavyweights expected to prosper from regulatory relief and private prison stocks, which stand to garner new business from Trump’s expected crackdown on immigration. The losers included renewable energy companies.In a sign that investors are also nervous about the impact of Trump’s protectionist policies, European stock markets gave up strong earlier gains to slip into the red. Frankfurt fell 1.1 percent with shares in automakers — a possible target of Trump tariffs — slumping.Asian stocks diverged, with Chinese stocks hit by expectations that Trump would impose tariffs on Chinese imports.Market focus was also on plans to stimulate China’s economy, the world’s second biggest after the United States.Trump tax cuts, while good for corporate profits, are seen as inflationary and therefore leading to fewer interest-rate cuts by the Federal Reserve in the coming months.That boosted the dollar against main rivals, with the greenback up nearly two percent against the euro.The Fed announces its latest rate decision on Thursday.”With the Federal Reserve expected to announce a likely 25 basis-point cut tomorrow, we are already seeing expectations reined in for the December meeting given the perception that Trump’s policies are inherently inflationary,” forecast Joshua Mahony, analyst at traders Scope Markets.Shares in Tesla soared 14.8 percent after Trump praised the electric car maker’s boss Elon Musk, a key campaign backer, as a “star” during his victory speech.- Bitcoin record -Bitcoin sprung $6,000 higher to a record above $76,000 topping its previous peak of nearly $74,000 in March.Trump has pledged to make the United States the “bitcoin and cryptocurrency capital of the world” and to put tech billionaire Musk in charge of a wide-ranging audit of governmental waste.Elsewhere, oil prices  edged lower “amid expectations that under Trump more crude will flow from US wells”, Streeter added. The main US contract WTI later erased its losses while international reference Brent was modestly lower.”Another Trump presidency is likely to place emphasis on energy independence and his policies are likely to favor fossil fuels, promoting deregulation in the oil, gas, and coal industries,” she said. – Key figures around 2150 GMT -New York – Dow: UP 3.6 percent at 43,729.93 (close)New York -S&P 500: UP 2.5 percent at 5,929.04 (close)New York – Nasdaq Composite: UP 3.0 percent at 18,983.47 (close)London – FTSE 100: DOWN 0.1 percent at 8,166.68 (close)Paris – CAC 40: DOWN 0.5 percent at 7,369.61 (close)Frankfurt – DAX: DOWN 1.1 percent at 19,039.31 (close)Tokyo – Nikkei 225: UP 2.6 percent at 39,480.67 (close)Hong Kong – Hang Seng Index: DOWN 2.2 percent at 20,538.38 (close)Shanghai – Composite: DOWN 0.1 percent at 3,383.81 (close)Euro/dollar: DOWN at $1.0732 from $1.0930 on TuesdayPound/dollar: DOWN at $1.2880 from $1.3042Dollar/yen: UP at 154.62 yen from 151.62 yen Euro/pound: DOWN at 83.30 from 83.80 penceWest Texas Intermediate: DOWN 0.4 percent at $71.69 per barrelBrent North Sea Crude: DOWN 0.8 percent at $74.92 per barrelburs-jmb/dw

The dollar surged, stocks rallied and bitcoin struck a record high Wednesday as the world gears up for a Donald Trump presidency that analysts say could rekindle inflation.The Republican candidate made a stunning political comeback as he defeated Vice President Kamala Harris to return to the White House, four years after losing it to Joe Biden.Well before several US media declared Trump the winner, Wall Street stock futures soared hours ahead of the market’s opening bell as the former president confidently claimed a “magnificent” victory.Europe’s main equity indices jumped in morning deals, while Asia diverged, with Chinese stocks hit by expectations that Trump would impose tariffs on Chinese imports.Market focus was also on plans to stimulate China’s economy, the world’s second biggest after the United States.”Trump trade is in full swing,” noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.A Trump win is expected to result in sweeping US tax cuts, seen as inflationary and therefore leading to fewer interest-rate cuts by the Federal Reserve in the coming months.That boosted the dollar against main rivals, with the greenback up more than 1.5 percent against the euro.The Fed announces its latest rate decision on Thursday.”With the Federal Reserve expected to announce a likely 25 basis-point cut tomorrow, we are already seeing expectations reined in for the December meeting given the perception that Trump’s policies are inherently inflationary,” forecast Joshua Mahony, analyst at traders Scope Markets.US Treasury yields also won support Wednesday.”Investors are bracing for tariffs and a clampdown on (US) immigration, policies considered to be inflationary which are likely to mean interest rates may be more elevated in the years to come,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.                   . She added that “expectations are high that a Trump presidency will mean fewer regulations on big tech and big finance”.Shares in Tesla soared more than 15 percent in pre-market US trading after Trump praised the electric car maker’s boss Elon Musk, a key campaign backer, as a “star” during his victory speech.- Bitcoin record -Bitcoin sprung $6,000 higher to a record $75,371.67, topping its previous peak of nearly $74,000 in March.Trump has pledged to make the United States the “bitcoin and cryptocurrency capital of the world” and to put tech billionaire Musk in charge of a wide-ranging audit of governmental waste.Elsewhere, oil prices slid “amid expectations that under Trump more crude will flow from US wells”, Streeter added. “Another Trump presidency is likely to place emphasis on energy independence and his policies are likely to favour fossil fuels, promoting deregulation in the oil, gas, and coal industries,” she said. – Key figures around 1030 GMT -Euro/dollar: DOWN at $1.0751 from $1.0930 on TuesdayPound/dollar: DOWN at $1.2894 from $1.3035Dollar/yen: UP at 154.00 yen from 151.60 yen Euro/pound: DOWN at 83.40 from 83.82 penceLondon – FTSE 100: UP 1.4 percent at 8,289.58 pointsParis – CAC 40: UP 1.7 percent at 7,531.34Frankfurt – DAX: UP 1.1 percent at 19,464.15Tokyo – Nikkei 225: UP 2.6 percent at 39,480.67 (close)Hong Kong – Hang Seng Index: DOWN 2.2 percent at 20,538.38 (close)Shanghai – Composite: DOWN 0.1 percent at 3,383.81 (close)New York – Dow: UP 1.0 percent at 42,221.88 (close)West Texas Intermediate: DOWN 1.7 percent at $70.79 per barrelBrent North Sea Crude: DOWN 1.7 percent at $74.26 per barrelburs-bcp/lth

The dollar surged and bitcoin hit a record high Wednesday before Donald Trump claimed victory in the US election, with traders ramping up bets on fresh tax cuts, tariffs, and rising inflation.While polls had shown the race on a knife edge, the Republican fared far better than his Democratic opponent Vice President Kamala Harris as results rolled in.Both candidates picked up expected wins in safe states, but indications that the business tycoon was on course for a second term boosted the so-called Trump Trade.While victory is not yet official, Trump claimed it in a speech in Florida, saying: “We are going to help our country heal… We have a country that needs help and it needs help very badly.”News that the former president’s party had won control of the Senate boosted the prospect of sweeping tax cuts, more tariffs, and deregulation — seen as a boost for the greenback.The dollar jumped 1.5 percent to 154.38 yen, its highest since July, while it was also up more than one percent against the euro and more than three percent against the Mexican peso.Bitcoin sprung $6,000 higher to a record $75,371.69, topping its previous peak of $73,797.98 in March.Trump has pledged to make the United States the “bitcoin and cryptocurrency capital of the world” and to put tech billionaire Elon Musk in charge of a wide-ranging audit of governmental waste.”The price of bitcoin has closely followed Trump’s position in the polls and on betting markets,” Russ Mould, an analyst at AJ Bell, said ahead of Tuesday’s US election.Investors are “potentially taking the view that a Republican victory would lead to a surge in demand for the digital currency”, he added.Analysts said a clean sweep of Congress and the White House for Trump and Republicans would likely boost the dollar and Treasury yields owing to his plans to cut taxes and impose tariffs on imports.Peter Esho, economist and founder at Esho Capital, said: “The markets are scrambling to figure out what happens next, but for the time being, the market is pricing in a higher growth and higher inflation outlook.”- ‘Trade and tariffs and taxation’ -And Neil Wilson at Finalto trading group said: “Trade and tariffs and taxation would be the three Ts of the Trump Trade, followed by deregulation.”But he added: “Bear in mind as a caveat that the House is still up for grabs and Trump had complete control of Congress last time and it didn’t mean he could do everything he said he world.”Such an outcome could provide a headache for Federal Reserve boss Jerome Powell as he continues his battle to bring inflation to heel, with Trump’s plans considered inflationary.The election comes as the central bank prepares to deliver its latest policy decision Thursday amid expectations it will cut interest rates by 25 basis points, having lowered them by 50 points in September.The dollar’s surge against the yen rallied stocks more than three percent in Tokyo at one point thanks to gains in exporters, while markets Sydney, Singapore, Taipei, Mumbai and Bangkok also rose.However, there were losses in Shanghai, Seoul, Wellington, Manila and Jakarta.Hong Kong was also well down — at one point diving almost three percent — on worries about the impact of a Trump presidency on China’s economy and relations between Beijing and Washington.London, Paris and Frankfurt all rose at the open.US futures also rallied.Traders had been given a strong lead from Wall Street, where all three main indexes climbed more than one percent.While the result of the election is being closely followed globally, it is of real interest in China after Trump vowed to ratchet up a trade battle with the economic titan by imposing massive tariffs on goods from the country.The vote comes as Chinese leaders hold a key meeting to hammer out a package of stimulus measures aimed at kickstarting growth and providing support to the colossal property sector, which is mired in a painful debt crisis.Beijing said Wednesday it hoped for “peaceful coexistence” with the United States as Trump looked set for victory.- Key figures around 0810 GMT -Dollar/yen: UP at 154.00 yen from 151.60 yen on TuesdayEuro/dollar: DOWN at $1.0735 from $1.0930Pound/dollar: DOWN at $1.2871 from $1.3035Euro/pound: DOWN at 83.40 from 83.82 penceTokyo – Nikkei 225: UP 2.6 percent at 39,480.67 (close)Hong Kong – Hang Seng Index: DOWN 2.2 percent at 20,538.38 (close)Shanghai – Composite: DOWN 0.1 percent at 3,383.81 (close)London – FTSE 100: DOWN 0.7 percent at 8,225.33West Texas Intermediate: DOWN 1.2 percent at $71.13 per barrelBrent North Sea Crude: DOWN 1.3 percent at $74.56 per barrelNew York – Dow: UP 1.0 percent at 42,221.88 (close)

The dollar surged and bitcoin hit a record high Wednesday as traders bet on a victory for Donald Trump as he picked up two of the key swing states needed to take the White House, ramping up bets on fresh tax cuts, tariffs and rising inflation.While polls had shown the race on a knife edge, the Republican appeared to be faring better than his Democratic opponent Vice President Kamala Harris as results rolled in.Both candidates have picked up expected wins in safe states, but indications that the business tycoon was edging it boosted the so-called Trump Trade.While many key swing states were too close to project, Trump won Georgia and North Carolina, with others still up in the air.News that the former president’s party had taken control of the Senate boosted the prospect of sweeping tax cuts, more tariffs and deregulation — seen as a boost for the greenback.The dollar jumped 1.5 percent to 154.33 yen, its highest since July, while it was also up more than one percent against the euro and more than three percent against the Mexican peso.Bitcoin piled almost $6,000 higher to a record $75,330.88, topping its previous peak of $73,797.98 in March.Trump has pledged to make the United States the “bitcoin and cryptocurrency capital of the world” and to put tech billionaire Elon Musk in charge of a wide-ranging audit of governmental waste.”The price of bitcoin has closely followed Trump’s position in the polls and on betting markets,” Russ Mould, an analyst at AJ Bell, said ahead of Tuesday’s US election.Investors are “potentially taking the view that a Republican victory would lead to a surge in demand for the digital currency”, he added.Analysts said a clean sweep of Congress and the White House for Trump and Republicans would likely boost the dollar and Treasury yields owing to his plans to cut taxes and impose tariffs on imports.Republican control of the Senate and House “could bring sweeping spending or tax policy shifts. Still, congressional gridlock could be the ultimate volatility suppressor”, said SPI Asset Management’s Stephen Innes.And Peter Esho, economist and founder at Esho Capital, said: “The markets are scrambling to figure out what happens next, but for the time being, the market is pricing in a higher growth and higher inflation outlook.”Such an outcome could provide a headache for Federal Reserve boss Jerome Powell as he continues his battle to bring inflation to heel, with Trump’s plans considered inflationary.The election comes as the central bank prepares to deliver its latest policy decision Thursday amid expectations it will cut interest rates by 25 basis points, having lowered them by 50 points in September.The dollar’s surge against the yen rallied stocks more than three percent in Tokyo at one point thanks to gains in exporters, while Shanghai, Sydney, Singapore, Taipei, Mumbai and Bangkok also rose.However, there were losses in Seoul, Wellington, Manila and Jakarta.Hong Kong was also well down — at one point diving almost percent — on worries about the impact of a Trump presidency on China’s economy and relations between Beijing and Washington.Traders had been given a strong lead from Wall Street, where all three main indexes climbed more than one percent.While the result of the election is being closely followed globally, it is of real interest in China after Trump vowed to ratchet up a trade battle with the economic titan by imposing massive tariffs on goods from the country.The vote comes as Chinese leaders hold a key meeting to hammer out a package of stimulus measures aimed at kickstarting growth and providing support to the colossal property sector, which is mired in a painful debt crisis.- Key figures around 0620 GMT -Dollar/yen: UP at 153.85 yen from 151.60 yen on TuesdayEuro/dollar: DOWN at $1.0746 from $1.0930Pound/dollar: DOWN at $1.2884 from $1.3035Euro/pound: DOWN at 83.41 from 83.82 penceTokyo – Nikkei 225: UP 2.4 percent at 39,405.19 (close)Hong Kong – Hang Seng Index: DOWN 2.0 percent at 20,585.45 Shanghai – Composite: UP 0.4 percent at 3,400.69 West Texas Intermediate: DOWN 1.8 percent at $70.73 per barrelBrent North Sea Crude: DOWN 1.8 percent at $74.19 per barrelNew York – Dow: UP 1.0 percent at 42,221.88 (close)London – FTSE 100: DOWN 0.1 percent at 8,172.39 (close)

Japanese auto giant Toyota kept its annual net profit forecast unchanged on Wednesday, despite logging a 26 percent drop for the first half of this financial year.The world’s top-selling automaker said unit sales were hit by production cuts in its home market, related to a failure to fully comply with vehicle inspection standards.In April to September, Toyota reported net profit of 1.9 trillion yen ($12.4 billion), down from 2.6 trillion in the same period a year ago.Although its second-quarter earnings were far lower than analyst expectations, the company still forecasts full-year net profit of 3.57 trillion yen.”We will strive to maintain and strengthen our earning power,” it said in a statement.Chief Financial Officer Yoichi Miyazaki said a boost to global production would help the company catch up.”Our Indiana plant in the United States, which had been partially shut down, resumed operations last month and we will return to a production pace of 10 million vehicles per year globally,” he said.Unit sales fell four percent in the first half of 2024-25, partly “due to the impact of halting production to address certification issues”, the company said.In June, the Japanese government told Toyota and its rivals Honda, Mazda, Suzuki and Yamaha to stop delivering certain vehicle models domestically because of these irregularities.The automakers insisted that the quality of their vehicles was not in question, arguing that their own testing was in some cases stricter than the official standards.Miyazaki said Toyota had taken time to rethink its approach so the group can “prioritise safety and quality”.Toyota also said Wednesday that fluctuations in the value of the yen had caused “valuation losses in foreign currency-denominated assets”.But this factor “does not indicate an actual deterioration in business”, the automaker said.In fact at the same time “the effects of foreign exchange rates, cost reduction efforts, and marketing efforts increased operating income”, it added.Toyota lowered its annual group production outlook to 10.85 million vehicles from the previous target of 10.95 million.The company had reported record bumper results last year, driven by strong sales of hybrid vehicles — which combine internal combustion engines and batteries — an area that Toyota pioneered with the Prius.