Global Markets React as Trump's Policies Spark Volatility

Asian markets experienced sharp declines amid concerns over President-elect Trump's policies, affecting Chinese markets and chip stocks. Bitcoin surged to new highs, driven by expectations of tax cuts and deregulation. The prospect of U.S. tariffs pressured the euro and yuan, while Wall Street reached record highs.

Asian markets faced significant downturns on Tuesday as Chinese stocks and chip shares plummeted. Investors were wary of U.S. President-elect Donald Trump's policy implications, while bitcoin soared to an unprecedented peak due to expectations of tax reductions and looser regulations under the new administration.

The possibility of U.S. tariffs put considerable pressure on the euro and China's yuan, with the euro tumbling to a near seven-month low and the yuan reaching an over three-and-a-half-month low. In contrast, the U.S. dollar is anticipated to gain from policies that could keep interest rates elevated.

MSCI's Asia-Pacific index dropped 1.7%, marking its lowest since late September, with a significant decline in chip stocks following reports of halted shipments to China. Meanwhile, Wall Street saw record high closures, further buoyed by Tesla's valuation surge and the promising outlook for pro-crypto lawmakers.

(With inputs from agencies.)