TOKYO — Asian stock markets displayed a mixed performance on Tuesday, showing only a subdued response to the inauguration of U.S. President Donald Trump.
The U.S. markets were closed on Monday due to the Martin Luther King Jr. Day holiday. Following the holiday, U.S. futures experienced an upturn while oil prices witnessed a decrease.
Some market analysts expressed that the inauguration could foster a sense of optimism in global markets. In contrast, others pointed out that the looming possibility of increased tariffs could dampen investor sentiment.
Trump released an “America First Trade Policy” memo shortly after assuming office, which suggested no immediate plans for raising tariffs. This development potentially eased some apprehensions regarding the prospect of steep double-digit tariffs on imports. However, the memorandum outlined intentions for a comprehensive reassessment and revision of U.S. trade policies.
Concerns regarding the impact of Trump’s trade strategies on China have lessened significantly, as both nations have indicated a desire to enhance their diplomatic relations.
“In a surprising turn of events that alleviated market anxieties, President Trump announced that he would not, contrary to earlier projections, implement new tariffs right away,” noted Stephen Innes, managing partner at SPI Asset Management.
In market performance, Japan’s Nikkei 225 index saw a slight increase of 0.2%, closing at 38,999.12. Meanwhile, Hong Kong’s Hang Seng index rose by 0.9% to 20,102.22, partially bolstered by the struggling Chinese property firm Country Garden, which saw its shares leap by 23.7% after receiving an extension to address its creditor agreements.
The Shanghai Composite index, however, dipped marginally by 0.1% to 3,241.57. In Australia, the S&P/ASX 200 climbed 0.7% to 8,402.40, while South Korea’s Kospi registered a negligible gain of less than 0.1%, reaching 2,521.21.
Additionally, shares in Fuji Media Holdings, which includes the prominent broadcaster Fuji TV, managed to recover from earlier declines. This bounce-back followed the decision of several companies, including Toyota Motor Corp., to suspend airing television advertisements for Fuji TV content amid a scandal reported by the weekly magazine Shukan Bunshun.
In the energy market, benchmark U.S. crude saw a decrease of 70 cents, bringing it down to $76.69 per barrel, while Brent crude, which serves as the international benchmark, lost 17 cents, settling at $79.98 per barrel.
Regarding currency trading, the weaker U.S. dollar is perceived as a reaction to the prevailing uncertainty surrounding Trump’s tariff policies, although fluctuations were relatively modest. The dollar fell to 155.42 Japanese yen from the previous rate of 155.61 yen. At the same time, the euro traded at $1.0378, down from $1.0419.
