Investing.com-- Most Asian stocks rose on Friday, tracking strength in Wall Street after the Federal Reserve cut interest rates as expected, while anticipation of more fiscal stimulus in China also buoyed local markets.

Regional markets took positive cues from a record-high close on the S&P 500 and the NASDAQ Composite, as markets were encouraged by the Fed signaling that it did plan to cut interest rates further, amid progress in bringing down inflation. 

Risk appetite also remained upbeat after Donald Trump won the 2024 presidential election earlier this week, although the implications of a Trump presidency for Asia were still potentially negative, given his plans to enact more protectionist trade policies.

U.S. stock index futures were flat in Asian trade. 

Chinese stocks rise with NPC set to deliver fiscal stimulus

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.4% and 0.6%, respectively, while Hong Kong’s Hang Seng index added 0.6%.

Mainland Chinese stock indexes were the best performers this week despite concerns over a Trump presidency. The CSI 300 and the SSEC were up nearly 7% each this week.

Focus was squarely on a meeting of the Standing Committee of the National People’s Congress, which is set to conclude later on Friday. The NPC is widely expected to outline plans for more fiscal spending.

Analysts expect at least 10 trillion yuan ($1.6 trillion) in additional spending over the coming years, as Beijing struggles to shore up slowing economic growth.

A second Trump presidency is also expected to see Beijing roll out more stimulus, JPMorgan analysts wrote in a recent note. Trump has vowed to impose a 60% tariff on all Chinese imports, heralding more economic headwinds for China. 

Beijing had outlined a slew of monetary and fiscal measures over the past month, aimed at supporting the economy. But a lack of clear details on their scale and timing had left markets wanting. 

Asian stocks upbeat, head for weekly gains

Most Asian markets drifted higher on Friday, and were set for weekly gains in one of the most important weeks of the year. 

Japan’s Nikkei 225 and TOPIX indexes were muted on Friday, but were up nearly 4% apiece this week. Japanese stocks rallied as the yen weakened sharply against the dollar, although it found some stability on Friday after the Fed’s rate cut.

Australia’s ASX 200 rose 0.9% and was close to a record high. The index was also set to add 2.3% this week, amid some positive earnings.

South Korea’s KOSPI rose 0.7% and was set to rise 1.7% this week, as local technology stocks tracked strength in their U.S. peers. 

Indian stocks lagged this week, with the Nifty 50 trading down 0.4% this week. Indian markets were walloped by sustained foreign capital outflows through the past month, amid a heavy dose of profit-taking and as investors pivoted into Chinese markets. 

Regional markets reacted positively to Trump’s election win, given that it cleared a major point of uncertainty for markets. This risk-on sentiment was furthered by the Fed's rate cut on Thursday, with the central bank also flagging strength in the U.S. economy.

Investing.com-- U.S. stock index futures steadied in evening deals on Thursday after a second day of record highs on Wall Street, as markets digested the Federal Reserve’s outlook on future rate cuts.

Wall Street remained heady after Donald Trump won the 2024 presidential election earlier this week, opening the door for more potentially expansionary policies in the coming years. 

A drop in the dollar and Treasury yields benefited markets, as did a swathe of positive earnings. 

S&P 500 Futures steadied at 6,006.0 points, while Nasdaq 100 Futures fell slightly to 21,216.25 points by 18:20 ET (23:20 GMT). Dow Jones Futures were flat at 43,933.0 points. 

Fed cuts rates by 25 bps, flags cautious outlook on future easing

The Fed cut its benchmark rate by 25 basis points to a range of 4.5% to 4.75% on Thursday, as widely expected.

Fed Chair Jerome Powell said the results of the presidential election would have no near-term impact on monetary policy.

But Powell reiterated that the Fed will maintain a data-driven approach to further easing, although he did note that inflation was cooling in line with the Fed’s outlook, while economic growth remained healthy. 

Powell also said that he would serve as the Fed chief until the end of his term in 2026. 

Powell’s comments on the economy offered some bullish cues to markets, helping quell concerns over a slowdown in growth in the coming months. But it still remained unclear just how much further interest rates will fall, and what a neutral rate will look like, although Powell had earlier said the neutral rate would be relatively higher. 

Traders were seen pricing in a 76.1% chance the Fed will cut rates by another 25 basis points in December, and a 23.9% chance rates will remain unchanged, CME Fedwatch showed. 

Wall St extends gains after Trump victory 

Wall Street indexes were mostly upbeat on Thursday, extending recent gains after Trump’s victory sparked a rally earlier in the week.

The S&P 500 rose 0.7% to a record high of 5,973.10 points, while the NASDAQ Composite rose 1.5% to a record high of 19,269.36 points. The Dow Jones Industrial Average lagged, ending flat at 43,729.34 points, although it remained in sight of a record high.

Trump’s victory came amid signs of a Republican sweep of both levels of Congress, presenting few hurdles to the 47th President in enacting major policy reform.

Trump is expected to enact looser fiscal policy, while his protectionist stance on trade and immigration is expected to benefit the dollar. 

WASHINGTON (Reuters) -U.S. mortgage rates increased to a four-month high this week and could rise further amid fears that President-elect Donald Trump's proposed economic policies could stoke inflation.

The average rate on the popular 30-year fixed-rate mortgage climbed to 6.79%, the highest level since July, from 6.72% last week, mortgage finance agency Freddie Mac (OTC:FMCC) said on Thursday.

It has increased for six straight weeks and has risen by 71 basis points since late September.

As supply remains below pre-pandemic levels, rising mortgage rates and elevated house prices have combined to stifle sales of previously owned homes, which hit a 14-year low in September.

"Buyers who were waiting until after the election to get into the market may not see rates as low as they had hoped," said Lisa Sturtevant, chief economist at Bright MLS.

The 30-year fixed mortgage rate tracks the benchmark 10-year Treasury note, whose yield jumped to a four-month high in the aftermath of Republican Trump's victory in the U.S. presidential race. Trump campaigned on a platform of tax cuts, which economists say would juice the economy, widen budget deficits and increase government borrowing.

He also promised to impose a 60% tariff on Chinese goods and at least a 10% levy on all other imports, which economists expect to re-ignite inflation and reduce the Federal Reserve's scope to cut interest rates.

Most home owners have mortgage rates below 4% and the so-called "rate lock" is starving the market for previously owned homes of supply. Bright MLS estimated that the median monthly payment on a mortgage to buy a $400,000 home has increased by almost $200 in just six weeks.

By Maria Martinez

(Reuters) - German exports and industrial output fell more than expected in September, showing the weakness of two of the pillars of the German economic model at the start of the fourth quarter.

Exports fell by 1.7% in September compared with the previous month, data from the federal statistics office showed on Thursday.

The result compared with a forecast 1.4% decrease in a Reuters poll.

A second presidency of Donald Trump, who has vowed a 10% tariff on imports from all countries, bodes ill for German industry and exports.

Germany would be the big loser if a Trump presidency sparked a tit-for-tat trade war between the United States and Europe, with Germany's previously much-envied industrial strength potentially becoming an acute vulnerability.

Industrial output fell by 2.5% on the month in September, data from the federal statistics office showed.

This compared with a forecast of a 1.0% decline in a Reuters poll.

By Francesco Guarascio and Phuong Nguyen

HANOI (Reuters) - Vietnam faces trade volatility with a new Trump presidency, officials and supply chain experts told Reuters, as the country could benefit from increased U.S.-China trade tensions but may also become "collateral damage" of U.S. protectionist measures.

The Southeast Asian industrial hub is a major exporter to the United States and had a 90-billion-dollar trade surplus with Washington as of September, the fourth largest after China, the European Union and Mexico.

The Communist-run country has been a top beneficiary of a hike in U.S. tariffs on China, which Donald Trump started in his first presidency.

Trump has threatened to impose 60% tariffs on U.S. imports of Chinese goods in his second presidency, which would pose major growth risks for the world's second-largest economy.

However, ahead of the U.S. elections Vietnamese officials said they would had preferred an expected status quo in trade policy under another Democratic president, rather than Trump's unpredictability, two senior officials said.

The main reason for concern, officials said, is the big trade surplus with Washington, which is partly the result of Vietnam being used as an assembling site for components still largely made in China - which occasionally has led to U.S. sanctions over illegal transhipment.

Trump has also threatened tariffs up to 20% for all imports.

Vietnam "could easily be a target for such protectionist measures and become collateral damage", said Leif Schneider, head of international law firm Luther in Vietnam.

Vietnam's main stockmarket rose on Wednesday on news of a possible Trump win, driven by stocks of industrial parks, and extended its gains on Thursday morning.

LNG, PLANES, GOLF DIPLOMACY?

The large trade surplus could be reduced to ease tensions with the U.S. with purchase of big-ticket items from the United States, a senior Hanoi-based diplomat noted, pointing at imports of Liquified Natural Gas (LNG) and the possible purchace of Lockheed Martin (NYSE:LMT) C-130 Hercules military transport.

It may also help that The Trump Organization has recently partnered with a Vietnamese company to develop a $1.5 billion golf course and hotel project in Vietnam, a Vietnam-based foreign investor said.

However, uncertainty prevails, as the new Trump administration "presents both opportunities and challenges for Vietnam," said Koen Soenens, marketing director at DEEP C industrial parks in northern Vietnam.

"While a second Trump presidency is expected to recalibrate American trade policy, the actual impact on Vietnam would heavily depend on the specific scope and targets of those policy changes," said Dan Martin, a Hanoi-based business advisor with investment consultancy Dezan Shira & Associates.

"The potential for Vietnam to attract more companies relocating from China remains strong, yet tariffs and trade restrictions may jeopardize these gains," Schneider added.

However, additional protectionism could accelerate the shift of supply chains from China to other markets, with Vietnam likely remaining a preferred destination for companies relocating production outside of China, Schneider added.

By Chen Aizhu and Siyi Liu

SINGAPORE (Reuters) -China faces a squeeze on supplies of cheap Iranian crude, which make up about 13% of imports by the world's biggest buyer of oil, if Donald Trump ramps up enforcement of sanctions on Tehran after his return as U.S. president in January.

Trump, who won Tuesday's election, Edison Research projected, is expected during his second term to re-impose his "maximum pressure policy" of heightened sanctions on Iran's oil industry over concerns about its nuclear programme, say Iranian, Arab and Western officials.

Such a move would raise the cost of China's imports, piling pressure on a refining sector grappling with weak fuel demand and tight margins, with independent plants known as teapots set to be hit especially hard.

"A Trump victory may see the United States enforce sanctions against Iran, thereby reducing Iranian oil exports and prompting oil prices higher," Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia (OTC:CMWAY), said in a note.

In 2018, during his first White House term, Trump reinstated sanctions on Iran, leading eventually to a halt in its oil exports to India, Japan and South Korea.

Late in 2019, China's teapot refiners stepped in as buyers of discounted Iranian crude, filling a vacuum left by its state oil firms wary of U.S. sanctions, saving billions of dollars, and cementing China's status as Tehran's top oil market.

China and Iran have built a trading system that uses mostly Chinese yuan and a network of middlemen, avoiding the dollar and exposure to U.S. regulators, making sanctions enforcement tough.

At the same time, Washington has been reluctant to take steps that would remove supply from the global market in the wake of the Ukraine war, analysts say.

Vortexa Analytics, which tracks Iran's oil flows, estimated China's imports of Iranian oil at 1.4 million barrels per day during the first nine months of this year.

MORE MEASURES

Last month, Washington expanded sanctions on Iran, adding measures against so-called dark fleet ships that carry its oil, which has slowed Iranian oil flows from Malaysia to China, according to a teapot trading manager who deals in Iranian oil and declined to be named due to the sensitivity of the matter.

"Even ship-to-ship (STS) activities could be hit. So the worry is more on the shipping than on banking," he said, referring to the practice of transferring Iranian cargoes between ships to mask their origins.

Teapots, with some already operating at a loss, might be forced to cut runs further if stricter sanctions enforcement by Trump on Iran as well as Venezuela tightens supplies and further dampens margins, independent refiner sources said.

However, China's imports from Iran were up about 30% between January and October despite tighter sanctions, which have encouraged "dark fleet" shipping activity, said Vortexa analyst Emma Li.

"We may only see significant changes when other players, such as banks, are added to the list," she said.

Iranian oil is typically rebranded by dealers as originating from Malaysia, Oman or elsewhere to circumvent U.S. sanctions.

Beijing repeatedly defends its oil trade with Iran as legitimate and conforming with international laws.

Investing.com-- U.S. stock index futures steadied in evening deals on Wednesday after Wall Street surged to record highs on Donald Trump winning the 2024 presidential election, with focus now shifting to the Federal Reserve. 

The central bank is widely expected to cut interest rates on Thursday. But its outlook on the path of interest rates is a point of uncertainty for investors. 

Futures steadied after Wall Street rallied to record highs on Wednesday, as investors cheered the prospect of lower corporate taxes under Trump, while the possibility of a Republican sweep in Congress presented a clear path for major policy changes. 

Sentiment was also buoyed by stronger-than-expected PMI data. 

S&P 500 Futures steadied at 5,690.0 points, while Nasdaq 100 Futures rose 0.1% to 20,909.75 points by 18:31 ET (23:31 GMT). Dow Jones Futures rose 0.1% to 43,923.0 points.

Wall St scales record high on Trump victory 

Wall Street indexes shot up on Wednesday after several networks declared Trump as the winner in the 2024 presidential elections. The former president had maintained a clear lead over Kamala Harris from the early counting of votes.

The Republicans won a majority in the Senate and also held a slim majority in the House of Representatives, with the prospect of a “red sweep” potentially giving Trump an easy path to enact sweeping policy changes.

Trump is widely expected to enact more inflationary policies, given his largely protectionist stances on immigration and trade. The dollar and Treasury yields rose sharply on this notion, although their gains did little to deter Wall Street.

The S&P 500 jumped 2.5% to a record high of 5,929.04 points on Wednesday, while the NASDAQ Composite rose 2.9% to a record-high 18,978.65 points. The Dow Jones Industrial Average surged 3.6% to 43,729.93 points, with the index logging its best day since 2022. 

Some positive chipmaker earnings also buoyed sentiment, after prints from GlobalFoundries Inc (NASDAQ:GFS) and Qualcomm Incorporated (NASDAQ:QCOM) beat expectations. Qualcomm rose nearly 7% in aftermarket trade, while GlobalFoundries added 0.5%, with Reuters reporting that the latter was poised to win government support from the CHIPS Act. 

Fed awaited for more cues on interest rates 

Gains on Wall Street now appeared to be cooling before the conclusion of a Fed meeting on Thursday, where the central bank is widely expected to cut interest rates by 25 basis points. 

But the bank’s outlook on interest rates remained a point of uncertainty, especially as recent data showed stickiness in inflation. 

Investors were seen sharply dialing back expectations for lower interest rates in the long-term, especially as Trump won a second term. 

By Yoruk Bahceli and Lucy Raitano

LONDON (Reuters) -Investors are bracing for further economic pain in Europe that could deepen euro losses and hurt its stocks, as a second Donald Trump presidency raises the prospects of hefty tariffs. 

European bonds emerged as winners, as expectations the European Central Bank will cut interest rates to counter an economic slowdown rose. But bets were generally contained as investors assess which of Trump's pledges will be implemented following his election victory on Wednesday.

The stakes are high for a region that has navigated the pandemic, war in Ukraine and global trade tensions in recent years and comes at a time of political uncertainty in France and Germany. Chancellor Olaf Scholz sacked Finance Minister Christian Lindner late on Wednesday, leaving the future of the German government unclear in Europe's biggest economy.

Trump has vowed a 10% tariff on imports from all countries, a big blow for the European Union which has the second-largest trade deficit with the United States globally and is the largest exporter to the U.S, according to JPMorgan. 

The EU faces more pain through its close ties with China, on whose imports Trump has pledged 60% tariffs, and may need to boost defence spending if Trump pulls U.S. support for Ukraine. 

 As traders raised ECB rate cut bets, shorter-dated German bond yields slid as prices surged. Longer-dated peers resisted a jump in U.S. Treasury yields.

"The bond market in Europe has responded by saying we should see lower growth, which can be offset by rate cuts from the ECB, but it's not going to be aggressive enough that it's going to push us into a nasty recession," said AXA Investment Managers' head of total return and fixed income Nick Hayes, who favours European bonds.

The mood was initially brighter in European stock markets, which rose reflecting a surge in U.S. peers and relief that the result became clear quickly. But they cut their gains and were last down 0.6% in late European trade. 

"The certainty is that he's back, the uncertainty is what he's going to do," said Hayes.  

In a clear sign of unease, the euro had plunged around 2% against the dollar and was set for its biggest daily drop since the height of the 2020 COVID crisis. 

JPMorgan, ING and ABN AMRO (AS:ABNd) reckon a drop to parity could be repeated under a Trump presidency depending on the extent of tariffs, as well as tax cuts that could fuel U.S. inflation and limit U.S. Federal Reserve rate cuts. 

IN THE BALANCE    

What comes next depends on the extent and pace of tariffs and tax cuts, how much they reignite U.S. inflation, and the countermeasures Europe and China take, investors said.

Whether Trump's Republicans take control of Congress will determine how much of his agenda he can implement. 

For now, traders expect around 130 bps of cuts by end-2025, versus around 120 priced in on Tuesday. 

Goldman Sachs said on Wednesday it expects more limited tariffs on Europe, foreseeing a 0.5% hit to euro zone output.

The euro, while sharply lower at around $1.07, is far from the parity level it last breached during 2022's energy crisis. Deutsche Bank (ETR:DBKGn) expects it to fall to $1.05 by year-end.

"Yes, tariffs are a big concern, but you have to put against that what relative growth is going to do," said Arun Sai, senior multi asset strategist at Pictet Asset Management, betting on euro zone growth stabilising while U.S. growth slows. 

Sai, whose firm dropped a bet against the euro in recent days, said he did not expect Trump to carry out all his tariff pledges immediately. 

Federico Cesarini, head of developed markets FX at the Amundi Investment Institute, said traders would have to completely price out Fed rate cuts to push the euro to parity. 

Traders still expect a Fed rate cut on Thursday and over 100 bps of easing by the end of 2025. 

MIXED PICTURE

While their rally lost steam, Europe's equity markets saw a key volatility tracker on track for its biggest daily drop in seven weeks. 

Defence and aerospace stocks outperformed, up 2% each, helped by expectations that Europe will have to step up defence spending.

Hani Redha, multi-asset portfolio manager at PineBridge Investments, said Europe's stock market reaction on Wednesday had to be seen "in the context of a pretty abysmal performance of European equities relative to pretty much every other region over the last three months."

"A lot of bad news is already built into the price," he added. 

Any gains could be short-lived as the impact of Trump's policies become clearer, investors said. 

Renewables, at risk from Trump's energy policies, fell sharply, as did auto stocks, expected to bear the brunt of potential new tariffs.

Denmark's Orsted (CSE:ORSTED) plunged over 12.7% while carmakers Porsche, BMW (ETR:BMWG) and Volkswagen (ETR:VOWG_p) fell 5.4%-7.7%. 

"Europe is getting the worst of both worlds and this comes at a time when the economy is struggling," said Seema Shah, chief strategist at Principal Asset Management, which is underweight European stocks. 

By Antoni Slodkowski, Liz Lee and Larissa Liao

BEIJING (Reuters) - As Americans voted in one of the tightest presidential elections in decades, China braced for an outcome that - regardless of who wins - would spell four more years of bitter superpower rivalry over trade, technology and security issues.

Strategists in Beijing said that while they expected more fiery rhetoric and potentially crippling tariffs from Republican candidate Donald Trump, some said he could be driven by pragmatism and willingness to strike deals on trade and Taiwan.

From Democratic candidate Kamala Harris, Beijing expected predictability and a continuation of U.S. President Joe Biden's approach centred on working with allies on China-related issues such as tech curbs, Taiwan, and conflicts in Ukraine and the Middle East.

Either outcome was unlikely to cause a shift, said analysts, given how wide-ranging the geopolitical rivalry with Beijing has become, and how politically lethal even a perception of reaching out to China is on both sides of the aisle in Washington.

"Regardless who is elected, the structural tensions are an undeniable reality and have become a widely accepted bipartisan consensus within the U.S.," said Henry Huiyao Wang of the Beijing-based Center for China and Globalization think tank.

China policies of either Trump or Harris administrations “will likely be strategically consistent," said experts from Peking University, Wang Jisi, Hu Ran, and Zhao Jianwei in their article in Foreign Affairs.

"As presidents, both candidates would present challenges and disadvantages for China, and neither seems likely to want a major military conflict or to cut off all economic and societal contacts," they said, adding that because of that, "Beijing is unlikely to have a clear preference."

Investing.com-- Bitcoin rose to a record high on Wednesday as early vote counting showed Donald Trump well ahead in the 2024 presidential elections, boosting hopes for more friendly regulation.

The world’s biggest cryptocurrency surged nearly 10% to a record high of $74,847.2. 

Broader crypto prices also rallied, with world no.2 crypto Ether rising 9.1% to $2,622.90.

Crypto prices shot up sharply after vote counting as of 22:10 ET (03:10 GMT) showed Trump in the lead with 198 electoral votes, while Kamala Harris held 109 votes.

Coverage by the Associated Press showed Trump was also leading in battleground states Pennsylvania, Arizona, North Carolina and Wisconsin. 

Crypto markets cheered the prospect of a Trump presidency, given that he has maintained a largely pro-crypto stance in campaigning, and has also promised to enact friendly regulation for the industry.