With Attention on Trump’s Choices, Stocks Edge Lower – Asia Market Wrap

Stocks in Asia fell as traders absorbed Trump’s latest cabinet picks, a day after his tariff threats shook emerging markets.

The MSCI Asia Pacific Index fell 0.2%, with Japanese benchmarks down roughly 1% while Hong Kong and China’s rose. Equity futures in Europe also fell. The Yen rose.

New Zealand cut its official cash rate by 50 bps. The New Zealand Dollar rose after traders analysed the central bank’s rate estimates and governor’s remarks.

The Yen rose by up to 0.6% against the Dollar. US 10-year rates declined one basis point to 4.29%, after rising 3 bps the previous day. Fed officials expressed support for a cautious approach to rate decreases, according to minutes from their most recent policy meeting.

Middle East tensions eased somewhat when President Joe Biden announced that Israel had secured a cease-fire agreement with the Lebanese militant group Hezbollah following weeks of discussions mediated by the US. In commodities, oil moved steadily as signals that OPEC+ will once again postpone restoring some output counterbalanced diminishing geopolitical risk.