Asia report: Markets mixed as Trump reinaugurated as US president

(Sharecast News) - Asia-Pacific markets finished in a mixed state on Tuesday as investors awaited further clarity on US president Donald Trump's policy direction following his inauguration. Market participants were also looking ahead to key central bank meetings across the region this week.

Malaysia's central bank is expected to maintain its policy rate at 3% on Wednesday, while the Bank of Japan is set to convene from 23 to 24 January, with governor Kazuo Ueda having signalled a possible rate hike.

Singapore's monetary authority will meet on Friday.

"As president Donald Trump's second term began, delaying immediate tariff impositions ignited a robust rally in the currencies of key US trading partners - Mexico, Canada, China, and the eurozone," said SPI Asset Management managing partner Stephen Innes.

"The currency markets initially soared with relief, buoyed by the Wall Street Journal article that Trump was opting for a thorough reassessment of tariff policies instead of immediate enforcement.

"This sense of optimism peaked during his inaugural speech but faced volatility when Trump later confirmed that tariffs on Mexico and Canada were still on the table."

Innes said such a series of events highlighted the "unpredictable market dynamics" accompanying Trump's presidency, underscoring the need for vigilance and adaptability in response to his administration's shifting policy landscape.

"The current silence regarding China suggests president Trump is angling for a significant deal.

"Some FX players even suggest a contemporary version of the Plaza Accord that includes Chinese president Xi Jinping."

Markets mixed as investors watch Trump's new presidency begin

In Japan, the Nikkei 225 gained 0.32% to close at 39,027.98, supported by advances in Sumitomo Dainippon Pharma, Lasertec, and Renesas Electronics.

The broader Topix index saw a modest increase of 0.08%.

In China, the Shanghai Composite edged down 0.05% to 3,242.62, weighed by sharp declines in Zhejiang Tuna Environmental Science & Technology and Ningbo Bird, both of which fell over 10%.

However, the Shenzhen Component index rose 0.48% to 10,305.69.

Hong Kong's Hang Seng Index outperformed regional peers, rising 0.91% to 20,106.55.

Gains were led by technology stocks, with Sunny Optical Technology climbing 7.26% and Semiconductor Manufacturing International Corporation up 6.35%.

In South Korea, the Kospi 100 added 0.13% to 2,520.58, driven by a strong performance in Kumho PetroChemical, which surged 9.7%.

Hyundai Heavy Industries and Hanwha Ocean also posted notable gains.

Australia's S&P/ASX 200 advanced 0.66% to 8,402.40, with Liontown Resources and Hub24 leading gains, rising 11.9% and 11.04%, respectively.

Across the Tasman Sea, New Zealand's S&P/NZX 50, however, slipped 0.27% to 13,052.90, with Fisher & Paykel Healthcare and Stride Property among the laggards.

In currency markets, the dollar was last up 0.23% on the yen, trading at JPY 155.98, as it rose 0.92% against the Aussie to AUD 1.6083, and advanced 0.92% on the Kiwi, changing hands at NZD 1.7793.

Oil prices declined, with Brent crude futures last down 1.66% on ICE at $78.82 per barrel, and the NYMEX quote for West Texas Intermediate falling 2.53% to $75.91.

Wholesale inflation in Korea rises more quickly in December

In economic news, South Korea's wholesale inflation rose by 1.7% year on year in December, marking its fastest pace since July 2024.

According to preliminary data from the Bank of Korea, the increase was driven primarily by higher costs in the information services sector, alongside rising prices in electric power, gas, and steam.

Reporting by Josh White for Sharecast.com.