Asian stocks fall amid Trump’s cabinet appointments, tariff concerns

Stocks across Asia dropped as investors absorbed US President-elect Donald Trump’s recent cabinet picks, following the market’s reaction to his tariff threats, which unsettled emerging markets the previous day.

The MSCI Asia Pacific Index was down 0.2%, with benchmarks falling about 1% in Japan while those in Hong Kong and China gained. Equity futures in Europe also drifted lower, News.Az reports, citing foreign media.

A Bloomberg gauge of the dollar retreated 0.1% to pare some of its strength in the previous session. The yen gained.

The president elect’s tariffs agenda seemed to gather further momentum on Wednesday, as Trump named Jamieson Greer as the US Trade Representative and Kevin Hassett to direct the National Economic Council. Greer was intimately involved in Trump’s first-term trade policy decisions. A slew of data from the US due later on inflation and economic growth may provide clues to the Federal Reserve’s next policy move.

New Zealand lowered the official cash rate by 50 basis points. The local dollar advanced as traders parsed the central bank’s rate projections and governor’s comments.

The yen strengthened as much as 0.6% against the dollar. US 10-year yields fell one basis points to 4.29%, after gaining three basis points in the previous session. Fed officials indicated support for a careful approach to rate cuts, according to minutes from their latest policy meeting.

Back in Asia, China is in focus as the government has approved a bond quota totaling 500 billion yuan ($69 billion) that will allow two state-owned asset managers to issue notes to fund investments in projects aimed at boosting economic growth.

In corporate news, Vitasoy International Holdings Ltd. shares surged the most since its listing after one of its shareholders raised stake in the soy food producer. Sanrio Co. tumbled the most in a decade after the brand owner of Hello Kitty said holders including its president will sell shares.

Middle East tensions abated somewhat as President Joe Biden said Israel reached a cease-fire deal with the Lebanese militant group Hezbollah after weeks of talks mediated by the US.

In commodities, oil ticked was steady as signs OPEC+ will once again delay restoring some output countered easing geopolitical risk.

News.Az