Stocks and Bonds Rise as Traders Cheer the Treasury Pick – Asia Market Wrap

Equities and Treasuries rose, with traders hailing Trump’s nomination of Scott Bessent for Treasury Secretary as a measured move that would bring more stability to the US economy and markets.

A barometer of Asian stocks increased by almost 1%, led by increases in Japan, South Korea, and Australia. US futures also moved higher. Meanwhile, the yield on 10-year Treasury notes fell 5 bps to 4.35%. The Dollar fell, as Bitcoin recovered from a weekend low.

Bessent, who manages macro hedge fund Key Square Group, has said he will support Trump’s tariff and tax cuts, but investors expect him to prioritise economic and market stability over political gains. The selection has alleviated fears about the incoming president’s protectionist policies, which had threatened to drive up inflation, exacerbate trade tensions, and increase market volatility.

Oil prices fell following the greatest weekly gain in nearly two months, as geopolitical worries in Ukraine and the Middle East kept investors on edge. Gold also declined after rising to its highest level in 20 months last week.

This week, Asian traders will be eagerly watching Japan’s inflation statistics after BoJ’s Ueda stated last week that the December policy meeting had begun. The Reserve Bank of New Zealand is likely to lower its benchmark rate on Wednesday.