Markets plummet at shock possibility of Trump presidency

The markets were in shock at the prospect that the Republican candidate Donald Trump could be the next US president.

1 min read

09 November, 2016

The Dow Jones Index is to suffer a bigger drop than after 9/11 [Getty]

Asian markets slumped around 2 percent and the Mexican peso hit record lows when traded against the dollar, as the Republican candidate Donald Trump became the favourite to become the next US president.

The values of the yen and gold sky-rocketed, as investors rushed for traditionally safe haven commodities.

Many investors fear for a Trump presidency, as they worry that his controversial policies will have a terrible effect on the economy.

"Put your seat belts on because this is going to be a bumpy ride," Chad Morganlander, a money manager at Stifel, Nicolaus & Co. said in an interview with Bloomberg News.

Tokyo closed its morning trading 2.2 percent down, while Hong Kong fell 2.3 percent and Shanghai sank 0.7 percent. Seoul decreased 2.8 percent, Singapore went down 1.4 percent and Wellington also plunged 2 percent.

The Mexican peso decreased 10 percent against the dollar in less than hour this evening as investors reflect a lack of confidence in the future of its economy.

There have been calls that the Dow Jones Index will open 700 points lower at the start of trading, which is a bigger difference than the morning after 9/11.