Asian stocks rally on Bessent’s Treasury appointment

Asian stocks and US equity futures reacted positively to the appointment of fund manager Scott Bessent as US Treasury secretary on Monday. Investors believe he will help manage US debt effectively.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.6 per cent as of 0143 GMT. Japan’s Nikkei jumped 1.6 per cent, South Korea’s Kospi climbed 1.5 per cent, and Australia’s share market rose 0.7 per cent to a record high.

However, Chinese markets were subdued, weighed down by concerns over potential tariffs from the incoming Trump administration and underwhelming stimulus measures from Beijing. Hong Kong’s Hang Seng added 0.2 per cent, while mainland blue chips eased 0.2 per cent.

The dollar weakened against major currencies as traders snapped up Treasuries. The benchmark US long-term yield fell 7 basis points to as low as 4.341 per cent on Monday. The yen strengthened 0.7 per cent against the dollar, while the euro gained 0.6 per cent.

In the commodity market, crude oil prices hovered near two-week highs as geopolitical tensions between Western powers and major oil producers Russia and Iran escalated, raising concerns about potential supply disruptions.

Brent crude futures climbed 0.2 per cent to $75.30 a barrel, while US West Texas Intermediate crude futures were at $71.38 a barrel.

Attribution: Reuters

Subediting: M. S. Salama