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Asian stocks retreat, bitcoin soars to tape on Trump ecstasy

Asian stocks eased while the dollar held at fourmonth highs on Tuesday, though all the enjoyment was centred on bitcoin as it soared to a record peak underpinned by financier bets on properties that are likely to gain from Donald Trump's election win.

Investors prepare for Trump's 2nd four-year term in office will bring equities-boosting tax cuts and looser regulations, raising the world's biggest and best-known cryptocurrency, bitcoin, to an all-time high of $89,637.

But the risk of possible tariffs from the new White House administration has put the euro under pressure, with the single currency touching near seven-month lows of $1.0687. overnight. It was last at $1.0658 in Asian hours on Tuesday.

The dollar on the other hand is expected to benefit from. some of the policies that will likely keep U.S. interest rates. fairly greater for longer. The dollar index, which. steps the greenback versus 6 peers, was at 105.57, simply shy. of the 4-month high hit on Monday.

Vasu Menon, handling director of investment strategy at. OCBC, stated the definitive win by Trump and the Republican party. gets rid of the overhang of an uncertain or an objected to U.S. election. outcome.

The medium-term outlook might become cloudier if Trump. pursues aggressive tariff hikes ... This could fuel inflation. ultimately and stop the Fed from cutting rates. Tariffs likewise. bring the risk of retaliation from the major trading partners.

But this is a story for another time and Trump's triumph. has actually let loose the animal spirit in markets in the meantime, Menon stated.

Data company DDHQ forecasted on Monday that Trump's. Republican Party had actually won a bulk in the U.S. Home of. Agents, signalling a majority for Republican politicians in both. chambers of Congress.

MSCI's broadest index of Asia-Pacific shares outside Japan. was down 1%, with Taiwan shares moving. 2% and South Korean stocks 1% lower.

Chip stocks in the region have actually been reeling this week after. Reuters reported that the U.S. bought Taiwan Semiconductor. Manufacturing Co to halt deliveries of innovative chips. to Chinese consumers that are frequently used in AI applications.

Japan's Nikkei was an outlier in the area and was. up 0.5% on a weak yen, which was hovering close to. more than three-month lows and last fetched 153.93 per dollar.

Overnight, Wall Street's primary indexes notched record high. closes, with Tesla getting around 9% after touching $1. trillion in market price on Friday on bets that the automaker. would benefit from CEO Elon Musk's support of Trump.

Trump's triumph and the election of pro-crypto candidates to. Congress have actually supercharged a bitcoin rally to tape-record highs. closer to 90,000, and targeting $100,000 next. It was last at. $ 88,709.

After such a performance, one might ask whether the Trump. trades are currently played out? Our take is 'No', as we believe. these trades still have plenty more legs, stated Manish Kabra,. lead U.S. equities & & multi-asset strategist at Societe Generale. in a note.

Meanwhile, Chinese shares inched higher, while Hong Kong. stocks moved 1%. Belief remained mostly downbeat after. Beijing's most current stimulus plan failed to deliver the direct. spending focused on customers that investors have been expecting.

On the macro side, investor focus will be on U.S. customer. rate inflation information on Wednesday, with a parade of Federal. Reserve speakers also due to speak today, including Fed. Chair Jerome Powell on Thursday.

Markets are pricing in 87% possibility of the Fed cutting rates. in December by 25 basis points.

In products, oil costs were bit altered in early. trading as China's stimulus plan and oversupply concerns took. the wind out of markets in prior sessions.

Brent unrefined futures was at $71.88 a barrel, up 0.06%. while U.S. West Texas Intermediate crude futures inched. 0.09% higher to $68.10 a barrel.

Area gold was stable in Asian hours at $2,624 per. ounce after touching its least expensive level in a month on Monday.

(source: Reuters)