Asian Markets Show Mixed Reactions Amid U.S. Inauguration

TOKYO (AP) — Asian stock markets exhibited a mixed performance on Tuesday, with trading volumes remaining muted as investors anticipated potential reactions to the inauguration of U.S. President Donald Trump.

Some experts expressed optimism that Trump's inauguration might uplift global market sentiments, while others were cautious, noting concerns about potential tariffs that could negatively affect Asian economies. The U.S. markets were closed on Monday in observance of Martin Luther King Jr. Day, which contributed to the quieter trading atmosphere.

In Japan, the Nikkei 225 index slightly declined by 0.1% to 38,951.77 in morning trades. Conversely, Australia's S&P/ASX 200 experienced a gain of 0.5%, climbing to 8,392.80. South Korea's Kospi index fell by 0.2%, settling at 2,514.06.

Concerns regarding Trump's policies affecting China appear to have eased a bit, as both nations have indicated a willingness to enhance their relationship. Moreover, Trump did not immediately announce any substantial actions regarding tariffs on Chinese goods.

The Hang Seng index in Hong Kong rose by 0.4% to reach 20,012.25, while the Shanghai Composite index saw a slight decline of 0.3%, settling at 3,233.85.

Stephen Innes, managing partner at SPI Asset Management, remarked, "In a twist that calmed nerves across global markets ... President Trump revealed he would not, contrary to expectations, roll out new tariffs immediately." This statement contributed to a sense of relief among investors.

U.S. stock market futures also showed signs of optimism, rising partially due to expectations of potential executive actions aimed at stimulating the U.S. economy.

On the corporate front, shares of Fuji Media Holdings faced downward pressure as several companies, including Toyota Motor Corp., chose to suspend airing television commercials that feature Fuji TV programs. The company's stock has experienced volatility in recent weeks in light of a prominent sex scandal that emerged in the media.

In the oil market, benchmark U.S. crude prices dropped by $1.14 to reach $76.74 a barrel, while international benchmark Brent crude rose slightly by 13 cents, settling at $80.28 a barrel.

The U.S. dollar showed signs of weakness, likely reflecting uncertainty surrounding Trump's tariff policies. However, currency fluctuations remained moderate. The dollar fell from 155.61 Japanese yen to 155.14 yen. The euro was valued at $1.0389, a slight decrease from $1.0419 the previous day.

Overall, the Asian markets reflect a cautious anticipation of the implications stemming from U.S. policy changes and evolving trade relations, as investors continue to monitor developments closely.

Asia, Markets, Trump