By Ankur Banerjee

SINGAPORE (Reuters) -Asian stocks tumbled on Tuesday dragged by Chinese markets and chip shares as investors worried about U.S. President-elect Donald Trump's policies, while bitcoin hit a record peak on bets on assets that are set to benefit from the new administration.

Investors anticipate Trump's second four-year term in office will bring equities-boosting tax cuts and looser regulations, lifting the world's biggest and best-known cryptocurrency, bitcoin, to an all-time high of $89,637.

But the threat of possible tariffs from the new White House administration has put the euro and China's yuan under pressure. The single currency touched a near seven-month nadir of $1.0687 overnight and was last at $1.064075, while the onshore yuan slipped to an over 3-1/2-month low.

The dollar on the other hand is expected to benefit from some of the policies that will likely keep U.S. interest rates relatively higher for longer. The dollar index, which measures the greenback versus six peers, was at 105.59, just shy of the 4-month high hit on Monday.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.7% to its lowest since Sept. 25, with Taiwan shares sliding over 2% and South Korean stocks 1% lower.

Chip stocks in the region have been reeling this week after Reuters reported that the U.S. ordered Taiwan Semiconductor Manufacturing Co to halt shipments of advanced chips to Chinese customers that are often used in AI applications.

Chinese shares slid while Hong Kong stocks tumbled 2.65%. Sentiment remained largely downbeat after Beijing's latest stimulus package failed to deliver the direct spending aimed at consumers that investors have been expecting.

Analysts also pointed to reports of Trump tapping U.S. Senator Marco Rubio to be his secretary of state, arguably the most hawkish option.

"The market is now worrying that there will be more rapid negative China policy emerging from the Trump administration with his new cabinet picks," said Steven Leung, executive director of institutional sales at UOB Kay Hian in Hong Kong. "Their hawkishness could be more than expected."

Futures indicate European markets are set for a lower open, with pan-European STOXX 50 futures down 0.8%.

Data provider DDHQ projected on Monday that Trump's Republican Party had won a majority in the U.S. House of Representatives, signalling a majority for Republicans in both chambers of Congress.

Vasu Menon, managing director of investment strategy at OCBC, said the decisive win by Trump and the Republican party removes the overhang of an unclear or a contested U.S. election outcome.

"The medium-term outlook could become cloudier if Trump pursues aggressive tariff hikes ... This could fuel inflation eventually and stop the Fed from cutting rates. Tariffs also carry the risk of retaliation from the major trading partners."

"But this is a story for another time and Trump’s victory has unleashed the animal spirit in markets for now," Menon said.

Overnight, Wall Street's main indexes notched record high closes, with Tesla gaining around 9% after touching $1 trillion in market value on Friday on bets that the automaker would benefit from CEO Elon Musk's backing of Trump.

Trump's victory and the election of pro-crypto candidates to Congress have supercharged a bitcoin rally to record highs closer to 90,000, and targeting $100,000 next. It was last at $88,516.

"After such a performance, one could ask whether the Trump trades are already played out? Our take is 'No', as we think these trades still have plenty more legs," said Manish Kabra, lead U.S. equities & multi-asset strategist at Societe Generale in a note.

On the macro side, investor focus will be on U.S. consumer price inflation data on Wednesday, with a parade of Federal Reserve speakers also due to speak this week, including Fed Chair Jerome Powell on Thursday.

Markets are pricing in 87% chance of the Fed cutting rates in December by 25 basis points.

In commodities, oil prices slid as China's stimulus plan and oversupply concerns took the wind out of markets in prior sessions.

Brent crude futures was at $71.60 a barrel, down 0.32% while U.S. West Texas Intermediate crude futures was 0.35% lower at $67.80 a barrel. [O/R]

Spot gold was 0.5% lower at $2,606 per ounce, touching its lowest level in a month. [GOL/]

(Reporting by Ankur Banerjee in Singapore, additional reporting by Jiaxing Li in Hong Kong; Editing by Christian Schmollinger and Shri Navaratnam)