Stocks Edge Lower With Focus on Trump’s Picks: Markets Wrap

(Bloomberg) — Stocks in Asia slipped as traders digested Donald Trump’s latest cabinet appointments, a day after his tariff threats roiled emerging markets.  

The MSCI Asia Pacific Index was down 0.2%, with benchmarks falling about 1% in Japan while those in Hong Kong and China gained. Equity futures in Europe also drifted lower. A Bloomberg gauge of the dollar retreated 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 0.6% against the dollar. US 10-year yields fell one basis points to 4.29%, after gaining three basis points 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. 

In commodities, oil ticked was steady as signs OPEC+ will once again delay restoring some output countered easing geopolitical risk.  

Key events this week:

• US PCE, initial jobless claims, GDP, Wednesday
• Eurozone consumer confidence, Thursday
• US Thanksgiving holiday. Markets closed, Thursday
• Eurozone CPI, Friday
• ECB releases consumer expectations survey for October, Friday
• “Black Friday,” the traditional start of the US holiday shopping rush

Some of the main moves in markets:

Stocks

• S&P 500 futures were little changed as of 2:38 p.m. Tokyo time
• Japan’s Topix fell 1.1%
• Hong Kong’s Hang Seng rose 0.6%
• The Shanghai Composite rose 0.5%
• Euro Stoxx 50 futures fell 0.3%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.0479
• The Japanese yen rose 0.5% to 152.36 per dollar
• The offshore yuan fell 0.1% to 7.2660 per dollar

Cryptocurrencies

• Bitcoin rose 1.1% to $92,701.59
• Ether rose 2.6% to $3,408.35

Bonds

• The yield on 10-year Treasuries declined one basis point to 4.29%
• Japan’s 10-year yield advanced one basis point to 1.070%
• Australia’s 10-year yield declined three basis points to 4.42%

Commodities

• West Texas Intermediate crude rose 0.2% to $68.91 a barrel
• Spot gold rose 0.4% to $2,643.69 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Tracy Withers.

©2024 Bloomberg L.P.