Asian stock markets showed a mixed response on Tuesday following the inauguration of U.S. President Donald Trump, with investors cautiously navigating the implications of his policies. While U.S. markets remained closed on Monday for the Martin Luther King Jr. Day holiday, futures indicated a positive trend, contrasting with a decline in oil prices.
Stephen Innes,Managing Partner at SBI Asset Management,noted,“In a development that has unnerved the global markets…president trump announced, contrary to expectations, that he will not impose new tariffs promptly.” This declaration eased some concerns, particularly regarding U.S.-China relations, as both nations pledged to work toward improving ties.
In Tokyo, the Nikkei 225 index rose 0.2% to 38,999.12 points, while Hong Kong’s Hang Seng Index climbed 0.9% to 20,102.22 points. The latter was buoyed by a 23.7% surge in shares of Country Garden, a Chinese real estate developer, after it secured an extended deadline to negotiate with creditors. Simultaneously occurring, the Shanghai Composite Index dipped slightly by 0.1% to 3,241.57 points.
Australia’s S&P/ASX 200 index gained 0.7% to 8,402.40 points, and South Korea’s Kospi index edged up less than 0.1% to 2,521.21 points. In the energy sector, U.S. West Texas Intermediate crude fell by 70 cents to $76.69 per barrel, while Brent crude dropped 17 cents to $79.98 per barrel.
Currency markets also saw movement, with the dollar slipping against the Japanese yen to 155.42 yen from 155.61 yen. The euro declined to $1.0378 from $1.0419.
| index | Change | Closing Value |
|---|---|---|
| Nikkei 225 | +0.2% | 38,999.12 |
| Hang seng | +0.9% | 20,102.22 |
| Shanghai Composite | -0.1% | 3,241.57 |
| S&P/ASX 200 | +0.7% | 8,402.40 |
| Kospi | +0.1% | 2,521.21 |
The muted reaction in Asian markets reflects a cautious optimism tempered by lingering uncertainties. Investors are closely watching how Trump’s policies, particularly on trade, will unfold in the coming weeks. For more insights on global market trends,explore our analysis on Asian market dynamics.
HTML-formatted Interview: asian stock Markets React to U.S. Inauguration
Interviewer (I): Good day! We’re here to discuss the Asian stock market reaction to the U.S. presidential inauguration. Let’s dive into the key points.
Interviewee (M:”, Managing Partner at SBI Asset Management): Certainly, thanks for having me.
I: Let’s start with the mixed response from Asian markets. What’s your take on that?
M: Well, the muted reaction reflects a cautious optimism among investors. On one hand, Trump’s proclamation to not impose new tariffs promptly eased concerns about U.S.-China relations.But on the other hand,there are still uncertainties about how his policies,particularly on trade,will unfold.
I: That makes sense. Let’s look at the indices.We saw a 0.2% rise in the Nikkei 225, a 0.9% climb in the Hang Seng, a slight dip of 0.1% in the Shanghai Composite, a 0.7% gain in the S&P/ASX 200, and a marginal 0.1% increase in the Kospi. What’s your read on these performances?
M: The Nikkei’s modest rise suggests a wait-and-see approach from Japanese investors. Meanwhile, the Hang Seng’s strong performance was boosted by Country Garden’s share price surge. Though, the Shanghai Composite’s slight dip might indicate some hesitation due to lingering concerns about the Chinese economy. In Australia and south Korea, the gains were driven by broader market optimism and local factors.
I: Speaking of Country Garden, what do you make of its 23.7% surge?
M: Its share price surge was mainly driven by relief that the company has secured an extended deadline to negotiate with creditors. This indicates that investors are backing the company’s efforts to resolve its financial issues.
I: Oil prices also declined. How does that impact Asian markets?
M: Indeed, oil prices fell, which could have a mixed impact on Asian markets. Energy-importing countries like India and Japan might benefit from cheaper oil, but energy-exporting nations like Malaysia and Indonesia could face headwinds.
I: Lastly,the dollar weakened against the yen and euro. How does currency movement affect Asian markets?
M: A weaker dollar makes Asian exports more competitive internationally, which can boost Asian markets. Additionally, a strong yen can definitely help Japanese companies repatriate overseas profits, further benefiting the Nikkei.
I: Thank you for sharing your insights, M:. For more analysis on Asian market dynamics,our viewers can explore the article here.
M: You’re welcome. It’s been a pleasure.
