Equities and Treasuries advanced, with traders embracing Donald Trump’s pick of Scott Bessent for Treasury Secretary as a measured choice that would inject more stability into the US economy and financial markets.
A gauge of Asian stocks rose about 1%, led by gains in Japan, South Korea and Australia. US futures also edged higher. Meanwhile, the yield on 10-year Treasuries dropped five basis points to 4.35%. The dollar declined while Bitcoin rebounded from a weekend drop.
Bessent, who runs macro hedge fund Key Square Group, has indicated he’ll back Trump’s tariff and tax cut plans but investors expect him to prioritize economic and market stability over scoring political points.
The nomination has eased concerns over the incoming president’s protectionist policies, which had threatened to stoke inflation, worsen trade tensions and amplify market volatility.
Elements of the so-called Trump Trade that feature a surging dollar and rallying Bitcoin are cooling, as traders trim bets on elevated interest rates that may result from pricier imports and lower taxes.
