Asian Stocks Rise as Trump Holds Off on Tariffs on Inaugural Day

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Headline: Asian Stocks Surge on Absence of Sweeping Trade Tariffs

Body:

Following President Donald Trump's inauguration, Asian markets witnessed a pronounced rise in equity values. The absence of sweeping trade tariffs, as initially anticipated, sparked a positive sentiment among investors.

Key Highlights:

* The MSCI Asia Pacific Index gained as much as 0.8%, with shares climbing in Australia, Japan, and South Korea.
* US equity futures extended their rally from Monday, indicating a bullish outlook.
* Asian currencies strengthened, while Bloomberg's dollar gauge declined.
* Treasury yields decreased as the absence of China-specific tariffs eased concerns over US inflation.

Market Reaction:

* Analysts attributed the positive market response to signs of a more conciliatory approach to trade relations between the US and China.
* The initial volatility in equity futures and currencies was seen as a foretaste of the potential uncertainty ahead.
* Sectors such as electric cars, China-exposed companies, and cryptocurrencies could experience heightened volatility in response to Trump's presidency.

China Vanke Developments:

* Bloomberg reported that Chinese officials are taking steps to stabilize operations at China Vanke Co.
* Trading in three of Vanke's yuan bonds was halted after prices surged on news that Shenzhen officials held a closed-door meeting to discuss the company.

Fixed Income Markets:

* Treasury 10-year yields fell as much as nine basis points.
* The absence of new China tariffs reduced concerns about potential inflationary pressures in the US.

Commodities and Other Markets:

* Oil prices declined as Trump announced plans to boost domestic crude production.
* Renewable energy stocks faced headwinds amid a shift away from those sources.
* Bitcoin retreated from a record high, reflecting heightened volatility in crypto markets.

Analyst Commentary:

* Tom di Galoma: Trump's focus on border issues rather than trade issues facilitated lower yields.
* Chamath de Silva: Holding back on tariffs should support Asian markets and weaken the USD.
* Priya Misra: The absence of Day 1 tariffs is positive for risk assets and negative for the dollar.
* Jun Bei Liu: Cooperative rhetoric provides additional time for Asian businesses to adjust.
* Billy Leung: The lack of immediate tariff announcements offers temporary relief for export-driven economies.

Key Events:

* UK jobless claims and unemployment data release
* Canada CPI release
* ECB President Christine Lagarde's speech at Davos
* South Korea GDP data release
* Eurozone consumer confidence release
* Trump's participation in the World Economic Forum
* Japan CPI and rate decision release
* India, euro area, and UK PMIs release
* ECB President Christine Lagarde and BlackRock CEO Larry Fink's speech at Davos

Market Performance:

* S&P 500 futures: +0.5%
* Hang Seng futures: +1.6%
* Nikkei 225 futures: +0.3%
* Japan's Topix: +0.2%
* Australia's S&P/ASX 200: +1%
* Euro Stoxx 50 futures: +0.1%

* Bloomberg Dollar Spot Index: Little change
* Euro: Little change at $1.0422
* Japanese yen: +0.3% to 155.20 per dollar
* Offshore yuan: Little change at 7.2632 per dollar

* Bitcoin: -0.3% to $102,202.04
* Ether: -0.7% to $3,258.11

* West Texas Intermediate crude: -1.3% to $76.89 a barrel
* Spot gold: Little change

Disclaimer: This article was created with the assistance of artificial intelligence and should not be considered financial advice.