Trump's Impact on Markets: Crypto Surge and Dollar Rise Amid Policy Shifts

Asian stocks fell as U.S. bond yields and the dollar rose in response to Trump's White House return, impacting inflation and monetary policy projections. Concerns about higher tariffs and tax cuts stoked inflation fears, boosting the dollar. Bitcoin surged past $90,000, buoyed by Trump's expected pro-cryptocurrency stance.

Asian stocks experienced a broad decline on Thursday, coinciding with a rise in U.S. bond yields and the dollar as investors evaluated the implications of Donald Trump's return to the White House. The shift comes amid expectations of changes in monetary policy and inflation in the world's largest economy.

Bitcoin showed resilience, maintaining a level above $90,000, following a surge beyond this benchmark in the previous session. The cryptocurrency market was invigorated by Trump's political comeback, with cryptocurrency advocates optimistic about favorable policies under his administration. Bitcoin experienced a 1.6% increase, reflecting more than a 30% climb over the prior two weeks.

Investor sentiment was also stirred by a U.S. inflation report that met expectations, leading to increased speculation of a Federal Reserve rate cut next month. However, Trump's anticipated policies on taxes and tariffs are causing inflation concerns, influencing the Federal Reserve's ability to adjust interest rates. Markets showed an 83% likelihood of a rate cut, according to latest data.

(With inputs from agencies.)