HONG KONG, (MILLAT/APP/AFP) – Asian markets
mostly bounced Tuesday from the previous day’s hefty sell-off, with hopes Donald Trump can push through his economy-boosting agenda despite last week’s healthcare debacle.
However, with expectations about the rate of future US interest rate
hikes receding the dollar is struggling to break back against its major peers.
Markets across the world tumbled after the tycoon’s repeal of
Obamacare fell at the first hurdle Friday as he failed to garner enough votes from his own Republican party, who control both houses of Congress.
The failure fuelled worries Trump would not be able to drive his
much-vaunted tax-cutting, infrastructure spending, deregulation plans with
analysts pointing out it will leave the administration with less cash to pay
for such measures. Hopes for his plan helped fuel a surge in global markets and the dollar since the November election.
While New York and European markets ended on a low, they were well
off their early losses and provided Asian traders with something to play with as the dust settles after Trump’s bruising defeat.
“What seems to be going on in US stocks is that president Trump is
being given the benefit of the doubt that he will be able to deliver on tax and infrastructure,” said Greg McKenna, chief market strategist at AxiTrader.
Tokyo ended the morning session 1.1 percent higher, having slumped
1.4 percent Monday.
Hong Kong added 0.6 percent and Sydney rallied more than one percent
while Seoul put on 0.2 percent, Singapore 0.5 percent and Taipei 0.3 percent.