Asia Stocks Set to Follow U.S. Selloff; Bonds Gain.

Asian equities futures pointed toward losses after U.S. stocks fell the most since Donald Trump’s election as reflation trades that bolstered the dollar and Treasury yields faltered.

Futures on benchmark gauges in Japan, Australia and Hong Kong indicated declines of at least 0.8 percent when trading begins. The S&P 500 Index sank more than 1 percent for the first time since Oct. 11, with the selloff deepening in the final 30 minutes of trading after Reuters reported North Korea would pursue an acceleration in its nuclear program. Treasury yields tumbled and the dollar slumped for a fifth straight day. Oil retreated and gold held gains.

Financial shares sank and volatility soared amid the biggest drop for U.S. stocks since the November election as concern grew that pro-growth policies won’t sail through Congress. Trump met with House Republicans Tuesday morning to rally support for the repeal of Obamacare as investors look for signs that his plans to cut corporate taxes and boost spending will move forward. House Republicans warned failure to pass a health-care bill on Thursday could imperil tax and spending reforms.

North Korea will seek to accelerate its nuclear and missile programs, including developing "preemptive first-strike capability" and an ICBM, Reuters reported, citing the nation’s deputy ambassador to the UN. For its part, the U.S. is exploring a new range of diplomatic, economic and security measures, Trump’s spokesman Sean Spicer said.

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