Asian equities were mostly lower on Tuesday, with US markets closed for Martin Luther King Jr. Day, as global sentiment weakened following fresh tariff threats from Donald Trump.
World shares came under pressure after the US president warned he could impose an additional 10pc tariff on imports from eight European countries, including Britain, as part of a push to assert control over Greenland.
In Japan, Tokyo’s benchmark Nikkei 225 slid 1.1pc to 52,988.24 after Prime Minister Sanae Takaichi called a snap general election for February 8.
Japanese government bond yields surged after Ms Takaichi signalled plans to dissolve parliament and seek a renewed mandate, aiming to capitalise on strong public approval ratings. Expectations of increased fiscal spending, alongside proposals to temporarily suspend the food tax, revived concerns over the country’s public finances. The yield on Japan’s 40-year government bond jumped to a record 4pc, with other long-dated yields also rising to multi-decade highs as prices fell.
Chinese markets declined, with Hong Kong’s Hang Seng Index edging down less than 0.1pc to 26,552.57 and the Shanghai Composite falling 0.3pc to 4,101.62.
Elsewhere, South Korea’s Kospi rose 0.3pc to 4,921.42, while Australia’s S&P/ASX 200 dropped 0.6pc to 8,818.10. Taiwan’s Taiex edged 0.1pc higher, while India’s Sensex was flat.
Gold surged to a fresh record above $4,717 an ounce, extending its rally as investors sought safety amid geopolitical uncertainty and concerns over global trade. Brent crude eased slightly to around $64 a barrel.
