Asian stock markets calmed on Friday after a rough day, helped by a drop in US bond yields and hopes for more economic stability. Investors were watching closely after US President Donald Trump’s new tax-cutting budget passed a key vote in the House of Representatives.The bill, called the “One Big, Beautiful Bill Act,” extends Trump’s 2017 tax cuts for another 10 years. It also cuts funding to some social programmes, which has caused concern. Experts say the plan could increase the US deficit by up to $4 trillion over the next decade, though the White House argues it will help the economy grow fast enough to cover the costs.US markets were shaken earlier in the week after weak demand for a 20-year government bond sale and credit rating agency Moody’s downgraded the country’s top credit rating. These events raised fears about the growing US debt, now at $36 trillion.However, US bond yields pulled back after the tax bill passed the House, giving a boost to stocks. Better-than-expected data on jobs, home sales, and factory activity also supported market confidence.In Asia, markets in Tokyo, Hong Kong, Shanghai, Sydney, Seoul and Manila all rose. However, Singapore, Jakarta, Taipei, and Wellington struggled to keep up.There was also some optimism from US federal reserve governor Christopher Waller, who said interest rates could be cut later this year if Trump’s tariffs on imports are reduced.In Japan, the yen rose slightly against the US dollar after inflation data showed a rise in food prices, especially rice. This puts pressure on the Bank of Japan as it considers what to do next with interest rates.Meanwhile, bitcoin continued to surge, reaching a new record high of $111,980.33. Investors are hopeful about a new law that could bring clearer rules to the cryptocurrency world, especially for stablecoins, digital currencies tied to the US dollar.Key market figures at 02:30 GMT:Tokyo – Nikkei 225: Up 0.8% at 37,280.84Hong Kong – Hang Seng Index: Up 0.3% at 23,624.64Shanghai – Composite: Up 0.1% at 3,383.81Dollar/yen: Down at 143.88 from 143.99Euro/dollar: Up at $1.1295 from $1.1281Pound/dollar: Up at $1.3432 from $1.3419West Texas Intermediate: Down 0.6% at $60.86 per barrelBrent North Sea Crude: Down 0.5% at $64.12 per barrelNew York – Dow Jones: Flat at 41,859.09London – FTSE 100: Down 0.5% at 8,739.26