[SINGAPORE] Asian markets extended gains at market open on Tuesday (Jan 13), as the momentum from a global rotation out of US assets continued despite fresh geopolitical warnings from US President Donald Trump.
While the Sell America” trade lifted regional indices on Monday, sentiment was tested this morning by Trump’s vow to impose a 25 per cent tariff on countries doing business with Iran, alongside lingering unease over the Federal Reserve probe.
The tariff announcement, made on social media overnight, also added that the new duty would be “effective immediately”. It did not provide details about the scope or implementation of the charges, increasing pressure on Teheran amid widespread anti-government protests. Iran’s major trading partners include China, India, and Turkey.
In Singapore, the Straits Times Index opened 0.3 per cent higher, climbing to 4,781.63 points as at 9.18 am. Hong Kong’s Hang Seng Index was up 1.3 per cent at around the same time, while Shanghai’s CSI 300 gained 0.2 per cent by 9.25 am.
South Korea’s Kospi rose about 1.1 per cent and Malaysia’s Kuala Lumpur Composite Index was up about 0.3 per cent. Tokyo’s Topix also gained about 2.3 per cent, while Taiwan’s Taiex opened 1.2 per cent higher.
Iranian unrest
Iran has been experiencing weeks of mass unrest – initially sparked by a currency crisis and worsening economic conditions, but has increasingly been aimed at the regime.
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Trump warned the Iranian regime against violently repressing the demonstrations, and said earlier that the US “stands ready to help.”
Meanwhile, Iran has warned both the US and Israel against any attempt to intervene.
Parliament Speaker Mohammad Bagher Ghalibaf said: “In the event of a US military attack, both the occupied territories and US military and shipping centres will be legitimate targets for us.”
He reiterated a warning that Iran could act preemptively against potential threats. “Within the framework of legitimate self-defence, we do not limit ourselves to responding only after an attack,” he said.
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