Asian markets offered a muted reception on Thursday to the passage of U.S. tax cuts as benefits to company bottom lines were already baked into stock prices, while bonds were spooked by the blowout in government debt needed to fund the giveaways.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.06 percent in thin trade, while the Nikkei .N225 eased 0.1 percent.
South Korea .KS11 was dragged down 1.4 percent by weakness in Samsung (005930.KS), but Indonesia .JKSE rose after Fitch upgraded the country’s credit rating.
Spreadbetters suggested European bourses would open a shade firmer while E-minis for the S&P 500 ESc1 were flat.
In U.S. President Donald Trump’s first major policy win, Republicans steamrolled opposition from Democrats to pass a bill that slashes taxes for corporations and the wealthy while giving mixed, temporary relief to middle-class Americans.
Having spent more than a year anticipating the bill, its actual passage proved something of an anticlimax for Wall Street. The Dow .DJI fell 0.11 percent, while the S&P 500 .SPX lost 0.08 percent and the Nasdaq .IXIC 0.04 percent.
Most of the action was in bond markets where yields on U.S. 10-year notes US10YT=RR jumped to the highest since March at 2.50 percent, in the process making a bearish break of a key chart level at 2.47 percent.