Market Jitters: Trump's Impact on U.S. Bond Yields and Stocks

Asian stocks fell due to rising U.S. bond yields ahead of critical inflation data. Trump's policies, expected to increase the fiscal deficit, have influenced market reactions. While U.S. stocks previously hit record highs, they stalled as bond yields soared. Global traders are now wary of potential impacts, especially regarding China and Europe.

Asian markets took a hit on Wednesday, driven by a surge in U.S. bond yields that unsettled investors awaiting key inflation data. This data may determine the speed at which the Federal Reserve eases policy.

Meanwhile, the U.S. dollar reached a three-month high against the yen, influenced by the market reopening after Veterans Day and the recent election of Donald Trump, whose proposed tax cuts and tariffs are expected to widen fiscal deficits and push government borrowing upwards.

Commodity prices were generally weak, with concerns focused on China amidst Trump's trade tariff threats. Despite fiscal stimulus from Beijing, optimism for economic revival remains muted. Key indexes in Hong Kong, Japan, and South Korea fell, and U.S. futures pointed downwards. The yen is nearing intervention levels, with Japan ready to act if necessary.

(With inputs from agencies.)