Trump’s election jeopardizes the Trans-Pacific Partnership agreement that would eliminate many barriers to trade between the United States, Australia, Japan, Vietnam, Chile and a host of other countries. That uncertainty was reflected in the worldwide markets as Trump made gains Tuesday night against most poll predictions.
“There was just a ripple effect that quickly went around the globe as foreign markets were seeing Trump not only doing well but looking like he was going to win,” Wood said. “It really shook up Asian markets that stood to benefit most from TPP. And our traders had to reposition to respond to the foreign markets.”
Japan’s Nikkei index fell nearly 400 points, and Hong Kong’s Hang Seng index dropped more than 800 points as election results were being tallied, leading the decline in the the U.S. markets.
But the volatility subsided as several sectors poised to benefit from Trump’s victory posted big gains, including the pharmaceutical and bio-tech industries, which had seen sharp declines in their stock prices on the expectation that Clinton would become president.