(Bloomberg) — Stocks in Asia wavered as traders digested Donald Trump’s latest cabinet appointments, a day after his tariff threats roiled emerging markets.
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The MSCI Asia Pacific Index was little changed, with equities falling in Japan while those in Hong Kong and China gained. A Bloomberg gauge of the dollar slipped 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.
“Prospects of further US tariffs remain a worry for Asian markets,” said Frederic Neumann, chief Asia economist at HSBC Holdings Plc. “The appointment of Greer to USTR is largely in line with expectations, indicating a more restrictive trade stance by the US under the Trump administration. It is clear that ‘Trump means business’ when it comes to tariffs.”
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 0.5% against the dollar. US 10-year yields ticked lower after gaining three basis points to 4.31% 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.