(Bloomberg) — Equities and Treasuries advanced, with traders welcoming Donald Trump’s pick of Scott Bessent for Treasury Secretary as a measured choice that would inject more stability into the US economy and financial markets.

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A gauge of Asian stocks rose about 1%, led by gains in Japan, South Korea and Australia. US futures also edged higher. Meanwhile, the yield on 10-year Treasuries dropped five basis points to 4.35%. The dollar declined while Bitcoin rebounded from a weekend drop.

Bessent, who runs macro hedge fund Key Square Group, has indicated he’ll back Trump’s tariff and tax cut plans but investors expect him to prioritize economic and market stability over scoring political points. The nomination has eased concerns over the incoming president’s protectionist policies, which had threatened to stoke inflation, worsen trade tensions and amplify market volatility.

Elements of the so-called Trump Trade that feature a surging dollar and rallying Bitcoin are cooling, as traders trim bets on elevated interest rates that may result from pricier imports and lower taxes.

“Bessent is seen as representing a relatively conventional choice which may deliver more moderate policy changes than some other possible picks,” to which traders have responded by selling the dollar, said Rob Carnell, head of research and chief economist for Asia Pacific at ING Groep NV. After the greenback’s recent strong gains, “the market is paring its positions ahead of important releases” of US inflation data and the Federal Reserve’s next meeting, he added.

The Bloomberg’s dollar index fell by the most in over two weeks, with the yen leading the gains. Traders betting on Trump’s fiscal policies — including sweeping trade tariffs and persistent economic growth — had pushed the dollar up for eight straight weeks through Friday.

Chinese stocks bucked the region’s trend, reflecting investors’ continued disappointment with a lack of stronger fiscal measures to revive the world’s No. 2 economy. Meanwhile, the country’s central bank kept a policy loan rate unchanged after last cutting it in September.

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Oil dropped after the biggest weekly advance in almost two months as geopolitical risks in Ukraine and the Middle East kept investors on edge. Gold also fell after jumping the most in 20 months last week.

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