Asian markets showed a mixed performance in a subdued response to Donald Trump’s inauguration as the 47th President of the United States. With US markets closed on Monday in observance of Martin Luther King Jr. Day, US futures ticked higher while oil prices declined.
Some analysts believed the inauguration would boost global market optimism, whereas others expressed concerns that potential tariff hikes could dampen sentiment. Notably, after taking office, Trump released an “America First Trade Policy” memo that signaled no immediate move to impose tariffs, easing fears of sudden double-digit tariff increases on all imports. However, the memo does outline plans for a comprehensive reassessment and overhaul of US trade policy.
Concerns about the impact of Trump’s policies on China have somewhat diminished following mutual commitments to improve bilateral relations. Stephen Innes, managing partner at SPI Asset Management, commented, “In a twist that calmed nerves across global markets … President Trump revealed he would not, contrary to expectations, roll out new tariffs immediately.”
In regional market movements, Tokyo’s Nikkei 225 index climbed 0.2% to 38,999.12. Hong Kong’s Hang Seng index surged 0.9% to 20,102.22, buoyed in part by embattled Chinese property developer Country Garden, whose shares soared 23.7% after receiving an extension on its creditor agreement deadline. Conversely, the Shanghai Composite index inched down 0.1% to 3,241.57.
In Australia, the S&P/ASX 200 rose 0.7% to 8,402.40, while South Korea’s Kospi experienced a marginal increase of less than 0.1%, reaching 2,521.21.
