Asian Stocks Fall While Traders Consider Trump’s Agenda – Asia Market Wrap

Most Asian stocks dipped as investors assessed the impact of President-elect Trump’s potential economic program and the strengthening currency on regional economies.

The MSCI Asia Pacific Index fell for the third straight day as Treasury yields increased, threatening to draw investment back to US assets. Hong Kong stocks led regional equities falls following news that Trump’s cabinet may include several China hawks. US and European stock futures also fell, as the Dollar rose.

While the so-called Trump trade boosts the Dollar and US stocks, the outgoing president’s policies are projected to have a less positive influence on global assets. His decision to raise tariffs is expected to have an impact on economies around the world, particularly in nations like China, who are big exporters to the US.

Treasury 10-year rates rose by up to 3 bps to 4.34% as trade of US government securities began in Asia following a US holiday on Monday. Oil was barely changed after its biggest drop in two weeks.

Hong Kong’s Hang Seng Index fell up to 3% as concerns about the incoming Trump administration’s China policy and disappointment with Beijing’s latest stimulus cooled sentiment.