HONG KONG—World stock markets extended their swift and surprising global rebound Thursday after being hammered by Donald Trump’s unexpected U.S. election victory.
After getting over their initial shock, investors were betting that a Trump presidency would not be as bad as they had first feared. Investors chose to focus on his campaign promises aimed at boosting U.S. economic growth through higher infrastructure spending and cutting red tape, rather than uncertainties such as what he might do with trade agreements.
European shares opened strongly, with France’s CAC 40 jumping 1.2 percent to 4,596.34 and Germany’s DAX leaping 1.2 percent to 10,776.93. Britain’s FTSE 100 climbed 1.2 percent to 6,995.72.
U.S. shares were poised to open higher. Dow futures added 0.9 percent to 18,699.00 and broader S&P 500 futures advanced 0.8 percent to 2,178.50.
Japan’s benchmark Nikkei 225 index rocketed 6.7 percent to close at 17,344.42 after sliding more than 5 percent the day before.
The dollar also recovered in currency trading. It was at 105.74 yen after dropping to near 101 yen the day before.
Trump pledged in his speech Wednesday to unify a deeply divided nation, helping to calm panicked financial markets. Investors had worried because his campaign promises carried few policy details, making him an unknown quantity compared with his rival, Hillary Clinton, seen as a safe choice.
“People realized that it is not the end of the world. Trump, being a businessman, will actually promote pro-business legislation, like cutting taxes and also spending heavily on infrastructure,” which could help growth in the U.S., the world’s biggest economy, said Francis Lun, chief executive of Geo Securities.
However, he added that investors will be watching with a skeptical eye to see what policies Trump will actually implement.
“You can say whatever you want before you’re president but after you become president, the choices are much, much tougher. It’s not that easy,” he said.
Some industries got a bump from investors’ hopes that Trump’s plans for infrastructure spending, tax cuts and lighter regulation will benefit the U.S. economy, the world’s biggest.
Takeuchi Manafucturing, which sells excavators, loaders and other heavy equipment to the U.S., soared 17.5 percent in Tokyo on hopes for higher construction spending.
South Korean drugmakers got a boost on the expectation that Trump and Republican-controlled Congress are less likely to crack down on rising drug prices. Hanmi Pharmaceutical rose 12 percent while Hanall Biopharma jumped 21 percent in Seoul.
In other Asian trading, South Korea’s Kospi advanced 2.3 percent to 2,002.60 and Hong Kong’s Hang Seng added 1.9 percent to 22,839.11. The Shanghai Composite index in mainland China rose 1.4 percent to 3,171.28 and Australia’s S&P/ASX 200 surged 3.3 percent to 5,328.80. India’s Sensex climbed 1.6 percent to 27,690.21.
Benchmarks in Taiwan, Singapore, the Philippines, Indonesia and Thailand also advanced.
The Mexican peso recouped some losses after plunging against the dollar Wednesday on fears Trump might cancel favorable trade deals with Mexico. The dollar weakened 0.3 percent to 19.79 Mexican pesos, which was still near its lowest level in decades. The euro edged up to $1.0945 from $1.0930.
Oil prices stabilized. Benchmark U.S. crude futures added 21 cents to $45.48 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 29 cents to close at $45.27 a barrel Wednesday. Brent crude, used to price international oils, gained 38 cents to $46.74 a barrel in London.