Responses in 8 MSCI Asian Emerging Markets Countries Post-Trump's Win US Presidential Election 2024

Abstract

Abstract - The United States presidential election has long been regarded as a major global political event, capable of influencing investor sentiment and triggering volatility in financial markets. The 2024 election, marked by the return of Donald Trump, has raised new concerns regarding protectionist policies that could disrupt global trade and capital flows. This study analyzes market responses in eight countries included in the MSCI Asian Emerging Markets Index—Indonesia, Malaysia, the Philippines, South Korea, Taiwan, Thailand, China, and India—during the window surrounding Trump’s victory. Employing an event study methodology, this research examines abnormal return patterns observed over a seven-day period (t-3 to t+3) to assess the short-term impact of political uncertainty on equity performance. Statistical significance tests are used to evaluate the market response before and after the event. The study aims to provide insights into how Asian emerging markets react to global political changes and how these responses may influence investor decision-making during geopolitical events.

Keywords – Abnormal Return, Emerging Markets Asia, US Election, Market Responses