Asian stock markets displayed mixed movements as investors reacted to the latest cabinet appointments by U.S. President-elect Donald Trump, alongside concerns over his trade policy. The MSCI Asia Pacific Index saw little change, with Japanese stocks declining while equities in Hong Kong and China registered gains. The Bloomberg Dollar Index eased by 0.1%, partially reversing its previous gains, while the Japanese yen strengthened.
Trump’s tariff agenda appeared to gain further momentum on Wednesday, with the announcement of Jamieson Greer as U.S. Trade Representative and Kevin Hassett to head the National Economic Council. Greer, who had a key role in shaping Trump’s first-term trade policies, is expected to continue his hardline stance on trade. These appointments, along with upcoming U.S. economic data on inflation and growth, could provide further clues about the Federal Reserve’s future policy direction.
“Worries over additional U.S. tariffs persist for Asian markets,” said Frederic Neumann, chief Asia economist at HSBC. “Greer’s appointment to USTR aligns with expectations, signaling a continued tough stance on trade under the Trump administration. It’s clear that Trump is committed to his tariff policies.”
In economic developments, New Zealand’s central bank cut its official cash rate by 50 basis points, which led to a strengthening of the New Zealand dollar as traders assessed the central bank’s future rate projections and comments from the governor.
The Japanese yen rose by up to 0.5% against the U.S. dollar, while U.S. 10-year Treasury yields edged lower following a 3-basis point increase in the prior session. The Federal Reserve minutes revealed a preference for a cautious approach to rate cuts among policymakers.
China also made headlines as the government approved a 500 billion yuan ($69 billion) bond quota, allowing state-owned asset managers to issue bonds to finance economic growth-boosting projects.
In corporate news, Vitasoy International Holdings saw its shares surge following a major shareholder’s increased stake in the soy food producer. Conversely, Sanrio Co., the owner of the Hello Kitty brand, suffered its biggest decline in a decade after announcing that its president and other stakeholders would sell shares.
Tensions in the Middle East showed signs of easing as President Joe Biden announced that Israel and the Lebanese militant group Hezbollah had reached a ceasefire agreement, following weeks of U.S.-mediated negotiations.
In commodities, oil prices stabilized as news of OPEC+ considering a delay in output restoration countered reduced geopolitical risks.
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