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Most Asian stocks dropped as investors weighed the market ramifications of a second Trump presidency, with its promise of steeper tariffs. The dollar edged higher after surging more than 1% on Wednesday.

The gains for US stocks reflected expectations that a Trump policy agenda favoring lower taxes and less regulation may support corporate profits. At the same time, Treasury 10-year yields surged 16 basis points on Wednesday on expectations that his fiscal plans and proposal to hike tariffs will drive inflation higher and erode the ability of the Fed to trim borrowing costs.

China’s benchmark CSI 300 Index slipped for a second day, dropping as much as 1%. Trump has pledged to introduce tariffs on Chinese goods to support US manufacturing.

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