The global pessimism that swept markets after Donald Trump’s shock win has evaporated this morning, with the ASX jumping 2.9 per cent on the open.

The All Ordinaries index was up 159.4 points, or 2.9 per cent, to 5393.7 points. Most sectors were stronger but gold, which rallied hard in Wednesday’s uncertainty, slumped 7.3 per cent, running against the optimism.

Industrials, property and utilities were also a little weaker.

The ASX rise more than makes up for the heavy falls experienced on Wednesday as the spectre of a Trump victory emerged.

The Australian dollar was up 0.14 per cent against the greenback to $US0.7645. The Japanese yen, UK pound and Euro were also higher.

The UK market was 1 per cent stronger, and interest rates were higher.

US markets were volatile then rallied hard as Mr Trump’s victory was assimilated.

Gains of 3 per cent each in the heavily weighted healthcare and financials sectors pushed the indices higher.

The Dow Jones Industrial index closed up 1.4 per cent and the broader S&P 500 closed up 1.11 per cent.

Bond proxy sectors, such as real estate and utilities, each off more than 2 per cent, were the worst performers.

“When you look at Trump’s plans, they are actually pro-market,” said Nadia Lovell, US equity strategist at JP Morgan private bank in New York.

“Increased fiscal spending, that’s great for infrastructure and defence names, less regulations that help banks, less involvement in healthcare — things that worried the market before.”

Mr Trump’s plans are reflationary policies, intended to increase economic output by lowering taxes and boosting spending.

The ASX took a leap.

A curb on drug pricing was a key campaign theme for Democratic nominee Hillary Clinton, while Mr Trump has called for repealing the Affordable Care Act (popularly known as Obamacare) and loosening restrictions on banks enacted after the financial crisis.

Writing in an economic note, IG’s chief market strategist Chris Weston said the response to Mr Trump’s victory had been breathtaking.

“Right here, right now, traders have viewed the combination of a cut in corporate tax (equating to around 0.5 per cent of GDP), sizeable infrastructure spend (I’ve seen numbers between $US500 billion to $US2 trillion) and a corporate tax repatriation window providing a massive boost to foreign direct investment,” he wrote.

“Throw in trade barriers (such as 45 per cent trade tariffs on Chinese goods) and a move to bring production back to the US, and you have a view that prices must increase (inflation) and, in turn, you have a view that the Fed will have to be more aggressive in tightening policy in 2017.”

– with ABC