Asian shares ex-China rally following Macron win

Asian equities except China are trading higher this Monday morning after the final polls in France showed a convincing win by the centrist presidential candidate Emmanuel Macron.

Japan’s Nikkei index jumped 428 points or 2.2% as the Dollar-Yen opened higher at 112.96 levels. Australia’s S&P ASX 200 jumped 0.65% in early trade, but eventually fell back into losses after the official data showed a sharp drop in the building permits. Shanghai Composite index dropped 0.90%. South Korea’s Kospi added 0.55%.

The risk-on action is also due to US non-farm payrolls report released on Friday, which added credence to Fed’s view that economy could rebound in the second quarter.

European index futures are enjoying moderate gains as well. However, Macron win was expected and has been priced-in well in advance. Hence, profit taking on “sell the fact” trade could end up playing a spoil sport later today.