Global markets buoyed by Donald Trump charm tactic

Donald Trump’s golf-course bonding with Japanese counterpart Shinzo Abe cheered world markets on Monday as investors maintained hopes of “phenomenal” tax reforms from the US President.

The clubhouse bonhomie between the leaders of the world’s biggest and third-biggest economies continued to underpin sentiment in equity markets after Wall Street shares hit a new high before the weekend.

Analysts said Trump had softened his campaign rhetoric on currency manipulators, soothing fears of trade disruption.

Shares in Asia followed the US lead overnight and the cheer spread to European bourses which all made gains today. London’s FTSE 250 also hit a new record high.

Markets are on tenterhooks for tax reforms from the US president expected hot on the heels of changes to Dodd-Frank banking regulations, which also boosted shares.

But Japan’s growth suffered a blip in the final three months of last year as the economy slowed to 0.2% despite a weaker yen offering a tailwind to its exporters.

Japan managed 1% growth for 2016 overall — down on 2015 — and household spending was flat or negative for most of the year. The Bank of Japan has pumped trillions of yen into the economy and cut interest rates to negative to boost growth and lift inflation.