TOKYO — On Tuesday, global stock markets displayed a mixed response to the inauguration of U.S. President Donald Trump.
France’s CAC 40 saw a slight increase of 0.1%, reaching 7,739.02. Meanwhile, Germany’s DAX index remained stable, closing at 20,988.89, while Britain’s FTSE 100 also gained 0.1%, ending the day at 8,533.10.
In the U.S., future contracts for the S&P 500 rose by 0.3%, with the Dow Jones Industrial Average increasing by 0.4%. It’s worth noting that U.S. markets were closed on Monday in observance of Martin Luther King Jr. Day.
Market analysts expressed mixed views on the impact of the inauguration. Some suggested that it could bolster optimism in global markets, while others cautioned that the potential for increased tariffs could dampen sentiment.
Following his inauguration, Trump released a memo outlining an “America First Trade Policy,” which implied that he would not implement immediate tariff increases. This response eased some of the immediate concerns about the potential for double-digit tariffs on imports, although it also hinted at a comprehensive reassessment of U.S. trade policy.
Stephen Innes, managing partner at SPI Asset Management, remarked that the markets calmed after it became clear that President Trump would refrain from imposing new tariffs right away, despite earlier expectations.
Concerns regarding the impact of Trump’s policies on relations with China have subsided somewhat, as both nations have indicated a mutual intention to improve bilateral relationships.
In Hong Kong, the Hang Seng index rose by 0.9%, reaching 20,106.55, buoyed in part by the struggling property developer Country Garden, which saw its shares soar by 17.5% after securing an extension to negotiate with creditors.
Conversely, the Shanghai Composite index experienced a slight decrease of 0.1%, settling at 3,242.62.
In Japan, the Nikkei 225 index finished up 0.3% at 39,027.98, while Australia’s S&P/ASX 200 index climbed 0.7% to reach 8,402.40. South Korea’s Kospi experienced a minimal decline, dipping less than 0.1% to 2,518.03.
Fuji Media Holdings, which includes the prominent broadcaster Fuji TV, managed to recover from earlier losses, climbing 2.1% on the day. The initial drop was attributed to multiple companies, including Toyota Motor Corp., halting television advertisements linked to Fuji TV programs. The stock had been volatile recently due to a developing scandal reported by Shukan Bunshun, a weekly magazine.
In the energy markets, benchmark U.S. crude oil prices fell by 97 cents, settling at $76.42 per barrel, while Brent crude, the global benchmark, declined by 32 cents, closing at $79.84 per barrel.
In the currency markets, the dollar maintained its position at 155.64 Japanese yen, while the euro recorded a decrease to $1.0362, down from $1.0416.
