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.”
