SOME markets across the Asia-Pacific region jumped – after US President Donald Trump did not immediately impose tariffs following his inauguration on Monday (Jan 20).
Both Japan’s Nikkei 225 and Australia’s ASX 200 leaped 0.8 per cent on Tuesday shortly after the open. South Korea’s Kospi was up 0.9 per cent and the FTSE Bursa Malaysia KLCI rose 0.4 per cent. Hong Kong’s Hang Seng Index gained 0.3 per cent in early trading.
Meanwhile, Singapore’s Straits Times Index was down 0.4 per cent as at 9.30 am. The Shanghai Stock Exchange Composite Index was also 0.2 per cent lower in early trading.
In Europe, the pan-European Stoxx 600 closed 0.05 per cent higher at 523.87 on Monday.
Trump did not mention any specific tariff plans in his inaugural address after he was sworn in as US president, according to Reuters, but reiterated he would create a new agency to collect tariffs and duties from foreign sources.
The US dollar index fell in reaction, dropping 1.2 per cent on Monday. It last stood at 108.69 on Tuesday morning.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Trump had initially threatened during his election campaign to impose tariffs of 10 to 20 per cent on global imports into the US and 60 per cent on goods from China to help reduce a trade deficit.
“There will be a huge amount for markets to digest this week, but if the implementation of trade and immigration policy does not negatively disrupt supply chains and the labour force, financial markets may unwind some of their recent inflation caution,” said Australian bank ANZ on Tuesday morning.
A weaker dollar also supported gold prices.
“The report saw the USD tumble, easing headwinds for the broader commodity complex. It also offered a moment of relief to commodity markets which have been concerned about the economic impact of such tariffs,” said ANZ. “Gold ended the session up as the potential for economic disruption from a trade war boosted haven demand.”
Bitcoin rose to a new record high of US$109,241 on Monday, before the inauguration took place, boosted by anticipation of Trump’s crypto-friendly policies. On Tuesday, the price fell back to trade last at US$101,626.25.
Bitcoin had soared past US$100,000 initially after Trump won the presidential election in November, with the President having pledged to make the world’s largest economy the “crypto capital of the planet”.
