Asian markets fell sharply on Wednesday, November 13, as investor concerns grew over the economic implications of Donald Trump’s presidency. Fears that his policies could reignite U.S. inflation and disrupt global markets intensified. Since Trump’s re-election, analysts have raised alarms about his tax cuts, import tariffs, and deregulation, which may drive up prices, already fueling a stronger dollar.
The dollar continued its climb, reaching a one-year high against the euro and nearing 155 yen, as traders adjusted their expectations of Federal Reserve rate cuts. Market forecasts now predict just two cuts by June, down from the previously expected four, reflecting reactions to Trump’s proposed economic policies.
Bitcoin surged to nearly $90,000 before settling around $88,404, with speculation surrounding Trump’s pro-crypto stance driving predictions that the cryptocurrency could soon surpass $100,000.
After an initial rally following Trump’s win, Asian markets reversed course as news of his cabinet appointments, including several China hardliners, stoked fears of a renewed U.S.-China trade conflict. This uncertainty comes as China strives to boost its economy, with markets reacting cautiously to Beijing’s September measures, which lacked fresh initiatives. Stock markets across Hong Kong, Shanghai, Tokyo, Seoul, Sydney, and Singapore all closed lower, following recent declines on Wall Street, where major indexes had ended a record-breaking rally.
Looking ahead, all eyes are on the U.S. consumer price index data for October, expected to show a slight increase. Analysts will closely examine the report for clues on the Fed’s next moves on interest rates ahead of its December meeting, following recent cuts of 25 basis points in November and 50 basis points in September.
With markets still volatile, global investors are closely watching Trump’s policy shifts, bracing for their potential impact on the global economy.
