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Asian equities stabilised Friday following the previous day’s US bond-fuelled sell-off with traders tracking a slight pullback in Treasury yields as Donald Trump’s signature tax-cutting budget passed a key congressional vote.Worries about the US budget deficit have returned to the fore this week after Moody’s removed its top-tier credit rating and the president pushed ahead with a budget that some suggest will expand the country’s ballooning debt.A tepid auction of 20-year Treasuries on Wednesday ramped up those concerns, dealing a blow to stocks that had just recovered from the April fireworks of Trump’s tariff blitz.Still, risk appetite returned in New York on Thursday, with yields pulling back after the Republican-led House narrowly passed Trump’s “One Big, Beautiful Bill Act”, which shrinks social safety net programmes to pay for a 10-year extension of his 2017 tax cuts.The package, which now goes to the Senate, had faced scepticism from fiscal hawks who fear the country is headed for bankruptcy, with independent analysts warning it would increase the deficit by as much as $4 trillion over a decade.But the White House insists it will spur growth of up to 5.2 percent, ensuring it adds nothing to the $36 trillion national debt — growth projections that are well outside the mainstream consensus.There is a feeling that “perhaps the fiscal worries have gone a bit too far”, said Pepperstone’s Chris Weston.”Many have crunched the numbers on the tax bill and see the raft of measures to not be overly stimulatory and to therefore result in a major blowout of the deficit in 2026 and 2027 and is, in fact, quite neutral in its effect.”The drop in Treasury yields — suggesting improving demand for US debt — was helped by upbeat data on the jobs market, home sales and factory activity that observers said indicated the economy remained healthy.A mixed day on Wall Street was followed by a largely positive start in Asia.Hong Kong, Shanghai, Tokyo, Sydney, Seoul and Manila all rose, though Singapore, Jakarta, Taipei and Wellington struggled.There was a little cheer from comments by Federal Reserve governor Christopher Waller, who said interest rates could be cut in the second half of the year if Trump’s tariffs come back down to around 10 percent.”If we can get the tariffs down closer to 10 percent and then that’s all sealed, done and delivered somewhere by July, then we’re in good shape for the second half of the year,” he told Fox Business.The dollar slipped against the yen as figures showed Japanese inflation rose more than expected owing to a surge in food prices, particularly rice.The reading turns the focus on the Bank of Japan as it considers its next move on monetary policy after a recent spate of interest rate hikes and in light of Trump’s tariffs. Bitcoin pressed on with its latest rally, hitting a fresh record of $111,980.33, on hopes for a cryptocurrency bill on the regulation of so-called stablecoins, digital coins with value tied to the dollar. This has led to optimism for future regulatory clarity in the sector, including for bitcoin, which is not directly linked to the dollar.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.8 percent at 37,280.84 (break)Hong Kong – Hang Seng Index: UP 0.3 percent at 23,624.64Shanghai – Composite: UP 0.1 percent at 3,383.81Dollar/yen: DOWN at 143.88 yen from 143.99 yen on ThursdayEuro/dollar: UP at $1.1295 from $1.1281 Pound/dollar: UP at $1.3432 from $1.3419Euro/pound: UP at 84.10 pence from 84.07 penceWest Texas Intermediate: DOWN 0.6 percent at $60.86 per barrelBrent North Sea Crude: DOWN 0.5 percent at $64.12 per barrelNew York – Dow: FLAT at 41,859.09 (close)London – FTSE 100: DOWN 0.5 percent at 8,739.26 (close)

Global equities were sluggish Thursday as US Treasury bond yields moderated following House passage of President Donald Trump’s mammoth tax cut legislation.A spike on Wednesday in yields on 10- and 30-year US bonds sent stocks sharply lower amid revived worries about a sell-off in US assets comparable to one earlier this spring before Trump retreated from some of his most onerous tariffs.But bond yields retreated somewhat later Thursday, boosting stocks a bit. Major US indices finished mixed after a choppy session with the Dow flat, the Nasdaq up slightly and the S&P 500 down slightly.The rise in yields had “gone a little bit too far,” said Victoria Fernandez, chief market strategist at Crossmark Global Investments.European key indexes ended their session just in the red as London, Frankfurt and Paris all shed around 0.5 percent as investors noted weak business activity data out of the eurozone and Britain.The HCOB Flash Eurozone purchasing managers’ index published by S&P Global registered a figure of 49.5 compared to 50.4 in April.”May’s snapshot is not pretty,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. “Looking ahead, companies are only cautiously optimistic. The expectations index is still well below its long-term average.”But he said there were reasons for confidence in the longer term, pointing to a rebound in manufacturing “with encouraging signs coming out of both Germany and France”, more interest rate cuts expected this year and lower oil prices compared to last year.Back in Washington, focus now turns to the Senate, which will consider parallel tax legislation after the House approved Trump’s measure by a single vote.The bill extends for 10 years tax cuts introduced under Trump’s 2017 legislation, while enacting cuts to social safety net programs. While investors welcome the tax cuts, they have been unnerved by forecasts that the proposal will add trillions of dollars in US debt.The yield on 30-year US government bonds climbed to 5.15 percent following the House vote, nearing levels last seen in 2007 at the start of the global financial crisis.But yields pulled back later in the session, hitting 5.07 percent near 2030 GMT.Jack Ablin of Cresset Capital Management said the shift in the bond market Thursday reflects short-term dynamics after Wednesday’s poor US Treasury auction sent yields sharply higher.”Investors are turning their attention back to the day rather than the structural dynamics,” Ablin said.- Key figures at around 2030 GMT -New York – Dow: FLAT at 41,859.09 (close)New York – S&P 500: DOWN 0.1 percent at 5,842.01 (close)New York – Nasdaq Composite: UP 0.3 percent at 18,925.73 (close)London – FTSE 100: DOWN 0.5 percent at 8,739.26 (close)Paris – CAC 40: DOWN 0.6 percent at 7,864.44 (close)Frankfurt – DAX: DOWN 0.5 percent at 23,999.17 (close)Tokyo – Nikkei 225: DOWN 0.8 percent at 36,985.87 (close)Hong Kong – Hang Seng Index: DOWN 1.2 percent at 23,544.31 (close)Shanghai – Composite: DOWN 0.2 percent at 3,380.19 (close)Euro/dollar: DOWN at $1.1281 from $1.1331 on WednesdayPound/dollar: DOWN at $1.3419 from $1.3420Dollar/yen: UP at 143.99 yen from 143.68 yenEuro/pound: DOWN at 84.07 pence from 84.41 penceWest Texas Intermediate: DOWN 0.6 percent at $61.20 per barrelBrent North Sea Crude: DOWN 0.7 percent at $64.44 per barrel

US President Donald Trump on Thursday will host a private event for hundreds of top investors in his crypto memecoin, with leaders of the Democratic opposition blasting it as “an orgy of corruption.”The unprecedented melding of US presidential power and personal business will take place at Trump’s golf club outside Washington, where the 220 biggest purchasers of the $TRUMP memecoin will have dinner with the president.The top 25 investors, according to an event website, will get a private session with Trump beforehand and a White House tour.Trump launched the memecoin three days before his January inauguration, quickly increasing his net worth by billions and raising major ethics concerns, including over possible foreign influence.Democratic Senator Elizabeth Warren and colleagues called Thursday for Trump to disclose who is attending the dinner.Calling the dinner “an orgy of corruption,” Warren told a press conference that Trump “is using the presidency of the United States to make himself richer through crypto.”Data analytics firm Inca Digital has confirmed that many transactions occurred through international exchanges unavailable in the United States, suggesting foreign buyers.Chinese-born crypto entrepreneur Justin Sun claims the top investor position, having committed $20 million to the memecoin as part of his $93 million total investment in Trump-linked crypto ventures.Sun, founder of top 10 cryptocurrency TRON, was under investigation by US authorities for market manipulation, but regulators, now controlled by Trump appointees, agreed in February to a 60-day pause to seek a settlement.According to the website Popular Information, a few weeks before that decision, Sun purchased $30 million in digital assets from a venture backed by Trump and his family.”Honored to support @POTUS and grateful for the invitation to attend President Trump’s Gala Dinner as his TOP fan!” Sun wrote Tuesday on X.Justin Unga of advocacy group End Citizens United described the crypto dinner as a blatant example of Trump profiting from the presidency while roiling the US economy.”Some say this is a back door to corruption,” Unga said.”I would argue it’s the front door with valet parking, and it’s got a red carpet… and a slap in the face of hard working Americans.”White House Press Secretary Karoline Leavitt dismissed the allegations of impropriety Thursday, telling a briefing that Trump is attending the dinner in his “personal time” and abiding by applicable conflict of interest laws.- More regulation? -The dinner comes as the US Senate is pushing through legislation to more clearly regulate cryptocurrencies, a long-sought request of the industry.Senators on Monday advanced a landmark bill known as the GENIUS Act that proposes a regulatory framework for stablecoins — a type of crypto token seen as more predictable for investors as its value is pegged to hard currencies like the dollar.That legislation had faced roadblocks in part because of Trump’s dabbling in cryptocurrencies — a rising sector he once dismissed as a scam.His stance reversed during the 2024 presidential campaign when crypto tycoons, frustrated by perceived unfair treatment under the Biden administration, became major contributors to his campaign.Bitcoin’s price hit a new all-time high on Thursday, climbing above $111,000 before falling slightly.- Expanding empire -Trump’s newfound enthusiasm for digital currencies has expanded into multiple ventures led primarily by his eldest sons.Their growing portfolio includes investments in Binance, a major crypto exchange whose founder seeks a presidential pardon to re-enter the US market.This investment flows through World Liberty Financial, a Trump family-backed venture launched last September with significant Mideast deals. The company’s founding team includes Donald Jr. and Eric Trump alongside Zach Witkoff, son of Trump’s diplomatic adviser.President Trump has taken concrete steps to reduce regulatory barriers, including an executive order establishing a “Strategic Bitcoin Reserve” for government holdings of the leading digital currency.

Tech giant Xiaomi unveiled a new advanced in-house mobile chip on Thursday, a significant milestone for the company as Chinese firms shift resources towards home-grown technology against a bleak international trade backdrop.Xiaomi, which sells goods from smartphones to vacuum cleaners and electric vehicles (EVs), is one of China’s most prominent consumer electronics firms.With the XRING O1, it becomes only the second smartphone brand globally after Apple to mass produce its own 3-nanometre chips, among the most advanced on the market.This despite being a latecomer to the chip industry, Xiaomi founder Lei Jun said at a launch event on Thursday, joking that the feat had been “harder than ascending to heaven”.Xiaomi took early steps into semiconductors for smartphones with the launch of the firm’s first in-house chip, the Surge S1, in 2017.But the group was forced to halt production of the chip due to technical and financial obstacles.Lei said the journey to developing the XRING O1 had taken over a decade. “How much hardship, how much sweat, how much untold pain have been involved in these 11 years? How much courage and determination did it take to make this decision?” he said. The XRING O1 will first be deployed in Xiaomi’s new 15S Pro flagship smartphone and the Pad 7 Ultra tablet, which were also launched Thursday along with a preview of the firm’s first electric SUV. – ‘Step to self-sufficiency’ -A number of Chinese firms are racing to develop their own chips with the aim of freeing themselves from reliance on foreign suppliers.Xiaomi is only the fourth smartphone brand globally to have developed its own system-on-chip, with Huawei the only domestic competitor. “This represents yet one more step toward China reaching self-sufficiency in this crucial industry –- as well as in broader ICT and electronics supply chains,” Stephen Ezell from US-based think tank Information Technology and Innovation Foundation (ITIF) told AFP.Over the past few years, Washington has sharply tightened export controls on advanced chip technology to China, citing national security concerns. Chinese chip foundries are restricted from accessing foreign equipment needed for cutting-edge chip production — meaning that firms have to rely on overseas foundries for 5nm-process and below. Xiaomi has not confirmed which company is manufacturing the XRING O1, though Lei said it uses the same second generation 3nm-process technology as Apple’s latest chips. Apple contracts Taiwanese chipmaking titan TSMC for its fabrication. The chip is a “significant” achievement for Xiaomi, and allows it to reduce “its reliance on external designers” such MediaTek and Qualcomm, Washington-based semiconductor and technology analyst Ray Wang told AFP.  “Longer term, owning its SoC (system-on-chip) roadmap will insulate Xiaomi’s devices from the US–China geopolitical tensions and help mitigate global supply-chain disruptions,” he said.

Stock markets mostly fell and US long-term borrowing costs surged Thursday as investors fretted over the US debt pile after President Donald Trump’s sweeping spending and tax cut plan passed the House of Representatives.Wall Street’s three main indexes were mixed at the open, with the broad-based S&P 500 and Dow falling while the tech-heavy Nasdaq rose.The yield on 30-year US government bonds climbed to 5.15 percent following the House vote, nearing levels last seen in 2007 at the start of the global financial crisis.”The increase in longer-term borrowing costs reflects renewed investor concerns over the ever-expanding size of the US budget deficit, and overall national debt,” said David Morrison, senior market analyst at financial services firm Trade Nation.A weak auction of 20-year US government debt on Wednesday had already flashed a warning sign that the bond market was worried about the country’s finances.Last week, Moody’s lowered its top-tier credit rating for the world’s biggest economy, citing the growing US debt mountain.The dollar remained under pressure while bitcoin reached a new record, nearing $112,000, and oil prices fell.”The growing mountain of US debt is causing ripples of worry across financial markets,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.”As the dollar has weakened, amid concerns about the US fiscal position, bitcoin has flexed even more muscle, as investors appear to be looking for alternatives to the greenback.” European stock markets were in the red in afternoon deals, as investors also reacted to weak business activity data out of the eurozone and Britain.Traders in Asia were also worried about rising Japanese bond yields, analysts said.Trump’s “One Big, Beautiful Bill Act” passed by one vote, 215-214, and along party lines after Republican leadership quelled a rebellion among fiscal conservatives.Independent analysts warn the bill would increase the deficit by as much as $4 trillion over a decade. The White House Council of Economic Advisors says the package will spur growth of up to 5.2 percent while Trump’s spokeswoman insisted it would not add to the deficit.- Key figures at around 1335 GMT -New York – Dow: DOWN 0.2 percent at 41,821.92 pointsNew York – S&P 500: DOWN 0.2 percent at 5,832.49New York – Nasdaq Composite: UP 0.1 percent at 18,886.82London – FTSE 100: DOWN 1.0 percent at 8,786.46Paris – CAC 40: DOWN 1.2 percent at 7,814.41Frankfurt – DAX: DOWN 0.9 percent at 23,898.53Tokyo – Nikkei 225: DOWN 0.8 percent at 36,985.87 (close)Hong Kong – Hang Seng Index: DOWN 1.2 percent at 23,544.31 (close)Shanghai – Composite: DOWN 0.2 percent at 3,380.19 (close)Euro/dollar: DOWN at $1.1297 from $1.1334 on WednesdayPound/dollar: DOWN at $1.3413 from $1.3421Dollar/yen: DOWN at 143.60 yen from 143.66 yenEuro/pound: DOWN at 84.23 pence from 84.42 penceWest Texas Intermediate: DOWN 1.5 percent at $60.68 per barrelBrent North Sea Crude: DOWN 1.4 percent at $64.01 per barrel

As Japan’s biggest defence exhibition kicked off this week, visitors got a close-up look at a model of its futuristic “railgun” that its makers hope will be able to shoot down hypersonic missiles.Instead of gunpowder, railgun technology uses electromagnetic energy to fire a projectile along a set of rails at ultra-high velocity.The round will then in theory destroy the target, which could be an enemy ship, drone or incoming ballistic missile, solely with its vast kinetic energy.Other countries, including the United States, China, France and Germany, are also developing the technology, but Japan’s navy in 2023 claimed a world first by test-firing a railgun on a ship.”A railgun is a gun of the future that fires bullets with electrical energy, unlike conventional artillery,” an official from the Acquisition, Technology and Logistics Agency (ATLA) within Japan’s Ministry of Defence told AFP.”It is expected that threats that can only be dealt with by railguns will emerge in the future,” said the official, who did not want to be named.The three-day DSEI Japan Conference defence fair, which began on Wednesday, comes as Japan adopts a more assertive defence policy and looks to sell more military equipment to other countries.In particular, Japan’s Mitsubishi Heavy Industries (MHI) and Germany’s Thyssen Krupp Marine Systems (TKMS) are competing for a major contract to supply the Australian navy with new warships.Winning the multi-billion-dollar Project Sea 3000 contract to supply Australia with Mogami-class frigates would be Japan’s largest postwar military export order, according to Japanese media.

Equities and oil prices slid Thursday on concerns over the US economy as President Donald Trump tries to push through fresh tax cuts that risks sending the country’s deficit ballooning further.A weak auction of 20-year US government debt flashed a warning sign that the bond market was worried about the country’s finances, days after Moody’s lowered its top-tier credit rating for the world’s biggest economy.Big losses Wednesday on Wall Street carried over into Asian and European trading Thursday.The dollar remained under pressure despite rising against the euro and pound.The European currencies were hit by weak business activity data out of the eurozone and Britain.Bitcoin extended its record run higher, reaching an all-time high of almost $112,000.”The growing mountain of US debt is causing ripples of worry across financial markets,” noted Susannah Streeter, head of money and markets at Hargreaves Lansdown.”As the dollar has weakened, amid concerns about the US fiscal position, bitcoin has flexed even more muscle, as investors appear to be looking for alternatives to the greenback.” Streeter added that investors have “taken on more risk as relief still washes through financial markets that the trade war between China and the US has receded”.Bond yields have spiked across the board as investors demanded more interest for holding government debt.In the US, 30-year Treasuries hit their highest level since late 2023.The selling came after the auction of 20-year bonds attracted tepid interest and brought back memories of the sell-off that followed Trump’s “Liberation Day” tariff blitz last month.Trump is hoping to push through a mega-bill pairing tax relief with spending cuts that critics say would decimate health care and push up debt.”The proposed tax cuts are raising concerns from economists about the US fiscal position and there are signs of anxiety in the bond markets about the country’s debt burden,” said National Australia Bank’s Tapas Strickland.Oil prices extended losses Thursday as US debt concerns could weigh on crude demand.The commodity shed 1.7 percent, also after government data showing US crude stockpiles rose last week.Crude had rallied Wednesday on a CNN report that Israel was planning a strike on Iranian nuclear sites.- Key figures at around 1035 GMT -London – FTSE 100: DOWN 0.7 percent at 8,726.95 pointsParis – CAC 40: DOWN 1.0 percent at 7,833.06Frankfurt – DAX: DOWN 0.9 percent at 23,911.23Tokyo – Nikkei 225: DOWN 0.8 percent at 36,985.87 (close)Hong Kong – Hang Seng Index: DOWN 1.2 percent at 23,544.31 (close)Shanghai – Composite: DOWN 0.2 percent at 3,380.19 (close)New York – Dow: DOWN 1.9 percent at 41,860.44 (close)Euro/dollar: DOWN at $1.1298 from $1.1334 on WednesdayPound/dollar: DOWN at $1.3396 from $1.3421Dollar/yen: DOWN at 143.64 yen from 143.66 yenEuro/pound: DOWN at 84.31 pence from 84.42 penceWest Texas Intermediate: DOWN 1.7 percent at $60.51 per barrelBrent North Sea Crude: DOWN 1.7 percent at $63.80 per barrel

Equities sank and Treasuries remained under pressure on Thursday following sharp losses on Wall Street fuelled by US economy fears as Donald Trump tries to push through fresh tax cuts that could balloon the already huge deficit.A weak auction of 20-year US government debt flashed a warning sign that the bond market was worried about the country’s finances, days after Moody’s lowered its top-tier credit rating.The news brought an end to a healthy run-up in recent weeks that was stoked by the US-China tariff detente and signs of progress between the United States and other countries on trade.Bond yields spiked across the board as investors demanded more interest for holding government debt, signalling their fears about the world’s biggest economy — 30-year Treasuries hit their highest level since late 2023.The selling came after the auction of 20-year bonds attracted tepid interest and brought back memories of the sell-off that followed US President Trump’s “Liberation Day” tariff blitz last month, which was followed by the White House taking a less aggressive approach.All three main indexes on Wall Street ended sharply lower.A tax bill pushed by Trump that is currently going through Congress pairs an extension of the tax cuts from his first presidential term with steep savings in government spending to pay for them.But many market watchers do not expect the spending cuts in the package to be sufficient to offset the tax cuts, lifting the deficit.”The proposed tax cuts are raising concerns from economists about the US’s fiscal position and there are signs of anxiety in the bond markets about the country’s debt burden,” said National Australia Bank’s Tapas Strickland.Trump’s first-term treasury secretary, Steven Mnuchin, warned that “the budget deficit is a larger concern to me than the trade deficit” and called for more spending cuts.Asian and European equities also sank, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Mumbai, Bangkok, Wellington and Manila all in the red.London, Paris and Frankfurt also dropped in the morning as data showed eurozone business activity contracted in May.The dollar also held losses against the yen on growing concerns about the US economy and as traders seek out the Japanese unit for its safe-haven status.- Bond market strife -Rania Gule, a senior market analyst at XS.com, said he expected to see the yen continue strengthening in the second quarter “unless there are major surprises in US monetary policy or unexpected economic developments”.He added that focus will now turn to US data, bonds, reactions to Trump’s tax plan, and the Bank of Japan’s next steps.”Regardless, the yen’s return to prominence not just as a haven, but as a fundamentally strong currency, has already begun — and is likely to continue,” he wrote.The uncertainty also helped revive demand for gold, another safe asset, which was sitting around $3,340 an ounce.And there are now fears that stocks could be in for another rough ride.”It took a day or two longer than I thought but it’s now in progress — stocks are starting to wake up to the strife in bond markets,” said Neil Wilson at Saxo.”Trouble has been brewing in the bond market for weeks and now it’s spread to the stock market. Worries about the US fiscal position and economy, with Donald Trump’s… tax bill about to be signed that will raise debt and possibly inflation, as well as a weak 20-year auction, pushing bond yields higher.”Stocks fell as investors realised this is not a drill – as heard on the floor earlier this week, they will break the equity market to save the bond market.”Still, bitcoin broke a fresh record of $111,878.25 as US lawmakers showed greater bipartisan support for a cryptocurrency bill on the regulation of so-called stablecoins, digital coins with value tied to the dollar.This has sparked fresh hopes for regulatory clarity in the sector, including for bitcoin, which is not directly linked to the dollar.Oil prices extended losses, giving up more than one percent, after data from the US Energy Information Administration showed the country’s stockpiles had risen last week.The news helped reverse a rally in the commodity on Wednesday that was sparked by a CNN report that Israel was planning a strike on Iranian nuclear sites.Worries about the economic outlook and the impact on future demand added to the selling pressure.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.8 percent at 36,985.87 (close)Hong Kong – Hang Seng Index: DOWN 1.2 percent at 23,544.31 (close)Shanghai – Composite: DOWN 0.2 percent at 3,380.19 (close)London – FTSE 100: DOWN 0.4 percent at 8,747.88Euro/dollar: DOWN at $1.1314 from $1.1334 on WednesdayPound/dollar: DOWN at $1.3425 from $1.3421Dollar/yen: DOWN at 143.06 yen from 143.66 yenEuro/pound: DOWN at 84.28 pence from 84.42 penceWest Texas Intermediate: DOWN 1.7 percent at $60.54 per barrelBrent North Sea Crude: DOWN 1.6 percent at $63.86 per barrelNew York – Dow: DOWN 1.9 percent at 41,860.44 (close)

Asian equities sank and Treasuries remained under pressure following sharp losses on Wall Street fuelled by US economy fears as Donald Trump tries to push through fresh tax cuts that could balloon the already huge deficit.A weak auction of 20-year US government debt flashed a warning sign that the bond market was worried about the country’s finances, days after Moody’s lowered its top-tier credit rating.The news brought an end to a healthy run-up in recent weeks that was stoked by the China-US tariff detente and signs of progress between the United States and other countries on trade.Bond yields spiked across the board as investors demanded more interest for holding government debt, signalling their fears about the world’s biggest economy — 30-year Treasuries hit their highest level since late 2023.The selling came after the auction of 20-year bonds attracted tepid interest, and brought back memories of the sell-off that followed US President Trump’s “Liberation Day” tariff blitz last month, which was followed by the White House taking a less aggressive approach.All three main indexes on Wall Street ended sharply lower.A tax bill pushed by Trump that is currently going through Congress pairs an extension of the tax cuts from Trump’s first presidential term with steep savings in government spending to pay for them.But many market watchers do not expect the spending cuts in the package to be sufficient to offset the tax cuts, lifting the deficit.”The proposed tax cuts are raising concerns from economists about the US’s fiscal position and there are signs of anxiety in the bond markets about the country’s debt burden,” said National Australia Bank’s Tapas Strickland.Trump’s first-term Treasury Secretary, Steven Mnuchin, warned that “the budget deficit is a larger concern to me than the trade deficit” and called for more spending cuts.Asian equities also sank, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Taipei, Wellington and Manila all in the red.The dollar also held losses on growing concerns about the US economy, while the uncertainty helped revive demand for safe-haven gold, which was sitting around $3,340 an ounce.And there are now fears that stocks could be in for another rough ride.”These higher long-end yields make it a whole lot harder to justify today’s equity valuations,” said Stephen Innes at SPI Asset Management.”Tech and growth names — already stretched — are staring down the barrel of a tangible equity to rates market repricing, and this could cap the rally fuel that’s been driving risk assets since the April tariff detente.”Still, bitcoin broke a fresh record of $110,707 as US lawmakers showed greater bipartisan support for a cryptocurrency bill on the regulation of so-called stablecoins, digital coins whose value is tied to the dollar. This has sparked fresh hopes for regulatory clarity in the sector, including for bitcoin, which is not directly linked to the dollar.Oil prices extended losses after data from the US Energy Information Administration showed the country’s stockpiles had risen last week.The news helped reverse a rally in the commodity on Wednesday that was sparked by a CNN report that Israel was planning a strike on Iranian nuclear sites.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.9 percent at 36,967.13 (break)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 23,733.67Shanghai – Composite: DOWN 0.1 percent at 3,383.87Euro/dollar: DOWN at $1.1332 from $1.1334 on WednesdayPound/dollar: UP at $1.3425 from $1.3421Dollar/yen: DOWN at 143.36 yen from 143.66 yenEuro/pound: DOWN at 84.40 pence from 84.42 penceWest Texas Intermediate: DOWN 0.6 percent at $61.21 per barrelBrent North Sea Crude: DOWN 0.6 percent at $64.54 per barrelNew York – Dow: DOWN 1.9 percent at 41,860.44 (close)London – FTSE 100: UP 0.1 percent at 8,786.46 (close)

Wall Street stocks tumbled Wednesday along with the dollar as a bond sell-off signaled investor unease while Congress weighs a tax-cut bill that could push up the US deficit.The yield on the 10-year US Treasury note approached 4.6 percent, its highest level since February, as Trump seeks to unify Republicans in the House of Representatives behind a sweeping bill that would slash taxes and roll back federal spending.Major US indices fell about 1.5 percent or more after a poor US Treasury auction sent bond yields sharply higher.”Investors are getting worried about the Trump tax bill that is working its way through Congress that is not going to be trimming the debt but actually adding to it,” said Sam Stovall of CFRA Research.”As a result, the bond yields have been moving higher and that is causing investors to be concerned.”Activity on Capitol Hill has taken center stage this week, while top finance leaders from the G7 group of nations gather in Canada for talks touching on the war in Ukraine and trade negotiations in the wake of Trump’s tariff onslaught.”A bond market crisis is exactly the sort of event that could send stocks tumbling and volatility surging,” said Kathleen Brooks, research director at XTB.”It’s also harder to recover from compared to the man-made tariff crisis,” she added.Bitcoin on Wednesday hit a new record high, of $109,499.76, as investors eyed new US legislation on cryptocurrency with optimism.In Europe, London’s FTSE closed slightly up, despite inflation data coming in higher than expected, which analysts said could slow the pace of interest rate cuts by the Bank of England.Germany’s DAX also ended in positive territory. But the CAC in Paris ended lower.An initial surge in crude prices spurred by a CNN report that Israel was planning a strike on Iranian nuclear sites reversed direction after a surprise announcement by the US Energy Information Administration that the country’s oil stocks had risen last week.Among individual companies, Google parent Alphabet bucked the tide, gaining 2.9 percent after announcing plans to include advertisements into its new AI Mode for online search.The integration of advertising has been a key question surrounding generative artificial intelligence chatbots, which have largely avoided interrupting the user experience with ads.Target fell 5.2 percent following another disappointing earnings release. The big-box chain, which is contending with tariffs and fallout from a boycott over its reversal on diversity pledges, reported a 2.8 percent drop in sales.- Key figures at around 2030 GMT -New York – Dow: DOWN 1.9 percent at 41,860.44 (close)New York – S&P 500: DOWN 1.6 percent at 5,844.61 (close) New York – Nasdaq Composite: DOWN 1.4 percent at 18,872.64 (close)London – FTSE 100: UP 0.1 percent at 8,786.46 (close)Paris – CAC 40: DOWN 0.4 percent at 7,910.49 (close)Frankfurt – DAX: UP 0.4 percent at 24,122.40 (close)Tokyo – Nikkei 225: DOWN 0.6 percent at 37,298.98 (close)Hong Kong – Hang Seng Index: UP 0.6 percent at 23,827.78 (close)Shanghai – Composite: UP 0.2 percent at 3,387.57 (close)Euro/dollar: UP at $1.1334 from $1.1283 on TuesdayPound/dollar: UP at $1.3421 from $1.3393Dollar/yen: DOWN at 143.66 yen from 144.51 yenEuro/pound: UP at 84.42 pence from 84.24 penceBrent North Sea Crude: DOWN 0.7 percent at $64.91 per barrelWest Texas Intermediate: DOWN 0.7 percent at $61.57 per barrel