Markets rise on Trump Treasury pick, bitcoin rally runs out of steam

HONG KONG (AFP) – Most markets rose yesterday a record close on Wall Street as traders welcomed Donald Trump’s pick for Treasury secretary

Most markets rose yesterday with a record close on Wall Street as traders welcomed Donald Trump’s pick for Treasury secretary, while bitcoin’s push to USD100,000 ran out of steam after coming within a whisker of the mark at the end of last week.

The gains came ahead of the release of key United States (US) data that could provide a fresh idea about the Federal Reserve’s plans for interest rates amid expectations the next president’s tax and tariffs plans will reignite inflation, tempering rate cut bets.

Investors gave the thumbs-up to news that US president-elect Trump had chosen billionaire investor Scott Bessent to lead the Treasury, with optimism he will take a considered approach to the economy.

Bessent, CEO of hedge fund manager Key Square Group, has called for an extension of tax cuts from Trump’s first term. He also wants to reassert American energy dominance and believes it is necessary to deal with the budget deficit.

Recently, he has called for tax reform and deregulation to spur growth and wrote in a Wall Street Journal opinion piece that this would be key to “restarting the American growth engine” and keeping prices in check.

This month, he called tariffs “a negotiating tool with our trading partners” in an opinion piece for Fox News, adding it was “a means to finally stand up for Americans”.

While his views are seen as hawkish, markets started on a bright note.

“(Bessent) brings this sense of almost gradualism to the administration as opposed to taking a big bang approach to making big policy changes,” chief economist Brian Jacobsen at Annex Wealth Management, told Bloomberg TV.

Markets may be relieved that the pick signals “an ‘America First’ kind of administration but not an ‘America Exclusively’ kind of administration”, he added.

After a strong finish on Friday on Wall Street – where the Dow ended on a record – Asian markets were broadly stronger.

Tokyo advanced more than one per cent, even as the yen pushed up against the dollar, while Sydney, Seoul, Singapore, Taipei, Mumbai, Bangkok, Wellington, Manila and Jakarta also sat in positive territory. However, after a healthy start, Hong Kong, Shanghai and Bangkok turned negative. London, Paris and Frankfurt rose at the open.

Bitcoin sat around USD99,728.34 on Friday, with traders awaiting the next catalyst to push it past the USD100,000 mark.