Global Markets React to U.S. Tax Bill Passage Amid Debt Concerns

Asian and European shares gained as investors bought beaten-down Treasuries following the passage of Trump's tax bill. The bill, pushing the U.S. debt up over time, stirred fiscal health worries. While Treasury and JGB yields fell, global market reactions varied, with fluctuating indexes and currency exchanges.

On Friday, Asian shares saw gains as previously battered Treasuries attracted buyers following U.S. President Donald Trump's narrow success in pushing his tax bill through the lower house. Despite this, concerns over escalating U.S. debt continued to dominate investor sentiment.

In Europe, the trend is similar as shares prepared for a noticeable uptick, with EUROSTOXX 50 and FTSE futures showing slight increases. Contrarily, weak business activity data from Europe kept shares there under pressure. Meanwhile, the passage of the tax cut bill is anticipated to increase U.S. debt by $3.8 trillion over the next decade, fulfilling several of Trump's campaign promises.

Moody's recent U.S. credit rating downgrade also exacerbated fiscal health worries. Despite this, some investors found the long-term bonds appealing, leading to an uptick in bond prices. The varied reactions across global markets highlighted the mixed sentiments prevailing due to ongoing fiscal and economic developments.

(With inputs from agencies.)