Nov 26 (Reuters) - A look at the day ahead in Asian

markets.

Donald Trump's pick to be U.S. Treasury Secretary proved to

be a balm for the bond market, while the dollar followed yields

lower in a move poised to influence trading in Asia on Tuesday.

The choice of prominent investor Scott Bessent made late on

Friday, rippled through markets on Monday, after days of

speculation over who Trump would choose to be essentially the

highest-ranking U.S. economic official.

Treasury yields, which move opposite to prices, fell

sharply, with the benchmark 10-year yield touching

its lowest level in more than two weeks. Treasury yields had

been rising at a torrid pace, partially due to concerns that

Trump's presidency would dramatically widen the federal deficit.

But Bessent was seen as someone who might moderate any

negative impact of Trump's fiscal policies. Some strategists

said his nomination was a relief as he understands markets and

his appointment could reduce the severity of potential tariffs,

which are favored by Trump.

The dollar index, which has surged since early

October, pulled back sharply on the day. A weaker dollar could

offer some relief to emerging market countries that have

borrowed heavily in the U.S. currency, amid concerns about a

rising dollar under Trump.

The removal of uncertainty over the Treasury secretary

position combined with lower bond yields boosted equities.

MSCI's gauge of stocks across the globe was up

about 0.4%, while the U.S benchmark S&P 500 closed up

0.3%.

The spotlight was on U.S. small-cap stocks, with the Russell

2000 hitting a record intraday high for the first time in

three years.

Some investors say small caps could be in the sweet spot, as

Trump's push for lower taxes and reduced regulations favors

smaller companies, while the Fed's lowering of interest rates

also stands to help smaller companies that tend to rely more on

debt financing.

Not everything was rosy in equities, as Chinese shares fell

amid concerns about a trade war hurt risk appetite. The Shanghai

Composite Index touched its lowest in about a month.

Elsewhere, signs of a ceasefire deal between Israel and

militant group Hezbollah in Lebanon prompted a pullback in oil

prices and gold, with the Treasury secretary news also dulling

the precious metal's allure.

With the Thanksgiving holiday in the U.S. coming on

Thursday, trading was expected to thin out, even as central bank

decisions in New Zealand and South Korea and inflation data in

the U.S. were set to provide some excitement later in the week.

Here are key developments that could provide more direction

to markets on Tuesday:

- Singapore manufacturing output (Oct)

- Hong Kong export/import data (Oct)

- Fed meeting minutes