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Asian markets mostly recovered during the course of the session on Tuesday from the previous sell-off in the wake of hopes that Donald Trump can win his economy-boosting agenda despite his recent failure to get his healthcare reform last week.   

As the next US rate hike dampens optimism, the dollar was sent under pressure and unable to retreat against its major peers.

Global markets posted losses after the tycoon’s repeal of Obamacare fell on Friday with insufficient votes from his own Republican party, which controls both houses of Congress.   

Given Trump’s healthcare setback, several analysts pointed out that he might not be able to push through his tax-cutting, infrastructure spending, deregulation plans, and would therefore leave the administration with an inadequate cash to pay for such measures.

It appears that hopes for Trump’s stimulus plan gave a lift on markets across the world and in the dollar since the November election.

“What seems to be going on in US stocks is that President Trump is being given the benefit of the doubt that he will be able to deliver on tax and infrastructure,” said chief market strategist Greg McKenna.

Hong Kong gained 0.4 percent during the course of the session, while Sydney rose 1.3 percent, Seoul 0.4 percent, Singapore 0.8 percent and Manila 1.2 percent. However, the Shanghai Composite Index declined 0.4 percent.

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South-East Asia Stocks Rises

Most South-East Asian stocks also bounced back on Tuesday from the previous session’s losses due to the looming concerns of investors on Trump’s stimulus plans.

Meanwhile, Singapore rose nearly 1 percent, led by advancing financial sectors such as DBS Group Holdings Ltd after posting gains of 1.6 percent and Oversea-Chinese Banking Corp of 1 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan rallied 0.7 percent.

Investors must closely watch Trump’s policies as worries doesn’t eases, according to analyst Teerada Charnyingyong. The President’s stimulus plans are expected to be in focus at least until the next Federat Reserve meeting.    

Shares of Singapore Post Ltd was up by 1.5 percent after the recent signing of property management settlement with a unit of CapitalLand Ltd that is set for running a retail mall.

Global Stocks Recover after Sell-off

Global stocks recovered on Tuesday after Monday’s sell-off on worries about Trump’s stimulus plans.   

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The global sell-off was driven by Trump’s defeat on pushing his healthcare reform passed by the House.

Asian stocks were mostly higher with the Nikkei 225 rallying 1.14%, while the Yen held steady at 110 levels against the dollar.

Further, European stocks also gained with DAX soaring 0.45%, while the FTSE 100 added 0.22%.

U.S. stock index futures climbed after Wall St pared losses in overnight trade.

Dollar index steadies at 99 level ahead of the most anticipated Fed Chair Janet Yellen’s speech.

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