Asian markets moved higher after President Obama was re-elected to the White House. As we all know the finances of the US is still horrible and their economy is still hurting, but the “fiscal cliff” that is approaching in the New Year might make things worse for Americans. This cliff will raise taxes and reduce government spending, and if this happens, the economy will almost surely enter recession again.
But what does this mean for the Chinese Market… not a whole lot. They expect “Nothing will change. [They] will still have ultra-low interest rates, a $1 trillion deficit, and quantitative easing.”
The re-election of Obama has proven to be good fro the Asian market for the US is heavily indebted to them, hence the increase in the stock market across seas.
It makes me curious to have seen the markets if the republican candidate, Mitt Romney, had been elected. I believe that the Asian market and Canadian market would have seen a loss because of the effect of a new style of government in office. It is an interesting thought though.