The New Zealand share prices rallied sharply in response to a post-election rebound on Wall Street, with the NZX-50 index jumping by 3.3 per cent in the opening minutes of trade.

After 15 minutes, the index was up 221 points at 6885.3 - wiping out yesterday's losses.

In the United States, the Dow Jones Industrial Index rallied by 257 points or 1.4 per cent after futures market trading had earlier pointed to a severe, election-inspired, fall.

US financial markets staged a huge flip flop on the back of the surprise win for Donald Trump in the US Presidential election.


Wall Street stocks rebounded strongly, the US dollar regained lost ground and US treasury yields firmed to eight-month highs.

As the evening progressed and the possibility of a Trump victory grew, US S&P stock futures plunged by 5 per cent or "limit down" - the maximum decline permitted before trading curbs kick. But later in the night, futures trading reversed, the index putting on a 1 per cent gain.

Likewise the US dollar was sold down sharply against the yen and several other currencies, only to erase its losses later in the night.

In US-10 year bonds - the bellwether instrument for borrowing costs - the yield shot up to 2.06 per cent from 1.7 per cent, reflecting expectations of higher inflation and the increased likelihood of a rate hike from the US Federal Reserve in December.

"We have had a massive flip flop - something that we don't see very often," Imre Speizer, senior markets strategist at Westpac, said.

"It was probably on a quick assessment that his policies were probably going to be good for growth," he said.