Asian stocks fell to the lowest level in almost two months on concerns US President-elect Donald Trump’s proposed tariffs and picks for key administration positions may stoke inflation.
Equity benchmarks in Japan and Australia retreated as a regional gauge dropped to the weakest level since Sept. 18.
The Bloomberg Dollar Spot Index was steady ahead of a report on US consumer-price inflation, while the yen approached the key level of 155 per greenback.
Treasury 10-year yields were little changed after surging 12 basis points on Tuesday. Traders are now pricing in about two US rate cuts through June, against almost four seen at the start of last week. US stock futures slipped.
Sentiment toward Asian equities has taken a cautious turn since Trump’s election, as traders expect his planned policies to further drive up inflation and slow the pace of interest-rate cuts.
The president-elect’s picks for key government posts are also fueling jitters, as he piles his Cabinet with people set to carry out his “America First” policies on the border, trade, national security and economy.
