Asian Stocks Surge Amid Bessent's Treasury Appointment

Asian stocks rose and U.S. equity futures rallied following Scott Bessent's appointment as U.S. Treasury Secretary. His selection is perceived positively by investors, impacting markets, currencies, and providing a boost to Bitcoin and oil prices. Traders expect Bessent to bring stability and advocate for gradual policy changes.

Asian stock markets and U.S. equity futures saw significant gains on Monday, fueled by the appointment of Scott Bessent as the U.S. Treasury Secretary. Traders expect Bessent to bring stability to the financial markets, positively impacting various sectors, including equities, currencies, Bitcoin, and crude oil.

MSCI's Asia-Pacific index climbed 1.6%, while the S&P 500 futures gained 0.5%, approaching record highs. The appointment relieved fears of an unconventional choice, with Societe Generale strategist Stephen Spratt describing Bessent as a 'safe hands' candidate. Investors also saw a retreat in bond yields, with the dollar declining against major currencies such as the yen and euro.

Bessent's policies, discussed on Bloomberg and the Wall Street Journal, include tax reform and deregulation, aimed at boosting bank lending and energy production. His past work with financial magnates George Soros and Jim Chanos adds to his credibility in the role. Under Bessent, financial markets anticipate a friendlier regulatory environment, especially for cryptocurrencies.

(With inputs from agencies.)