Metro Manila (CNN Philippines) — Financial markets have been sent reeling after Donald Trump snatched an unexpected victory in the United States elections.
Major stock markets across Asia bled heavily on Wednesday.
Japan’s Nikkei was the biggest loser, down 5.36%.
Hong Kong’s Hang Seng Index and Korea’s KOSPI ended the day shedding 2.16% and 2.25%, respectively.
In China, the Shanghai Composite Index held steady, only dropping 0.62%.
Back home, the Philippine Stock Exchange (PSE) didn’t fare any better. Its benchmark index fell 2.58%.
Uncertainty built up throughout the trading day, with Trump and rival Hillary Clinton neck-and-neck for much of the polls.
But the volatility turned into a sharp decline as Trump eventually pulled away, pushed by swing states like Florida, North Carolina, Ohio and Iowa.
Clinton was the market choice, BDO Chief Market Strategist Jonathan Ravelas said in an interview.
“It’s a continuity play. She was seen as the candidate who could continue the policies that could steer the US economy to resurgence,” he explained.
Trump, meanwhile, has promised to overhaul much of US President Barack Obama’s reforms. He has also spoken out against international trade, outsourcing and immigration.
First Grade Finance Managing Director Astro del Castillo called it the “Trump disaster,” with markets completely blindsided by the results of the elections.
Major stock markets even ended on a high note on Tuesday, widely expecting a Clinton victory, he pointed out.
European financial markets have just opened, but the United Kingdom, France and Germany are already showing loses as well.
All eyes, though, will be on the US when stock markets open later on. In the middle of the counting on Wednesday, the Dow futures index already fell by as much as 750 points, though it has since recovered.
The last time global financial markets were shaken like this was in June during the shock Brexit vote.
In a narrative very similar to the US elections, Britons defied expectations and voted in a referendum to leave the European Union.
Ravelas said Philippine markets will likely move sideways in the coming days, as investors try to make sense of what a Trump presidency could bring.
The PSE index will likely trade between 7,000 and 7,500 points, while the exchange rate could move between ₱48-₱48.60 to the dollar.
“We’ll see how things will shape up in the coming days. It’s really just wait-and-see for now,” Ravelas said.
