Asia's Markets Largely Advanced Amid Trump Inauguration Speculation

 

Asian markets broadly gained on Monday (Jan. 20) as optimism grew that US President-elect Donald Trump might take a lenient approach toward China after his inauguration. Gains in the US market on Friday provided a positive cue for the regional investors.

 

Japan’s Nikkei 225 index led the rally by gaining 1.17%. Investors speculated that Trump’s lack of emphasis on trade tariffs during a rally on Sunday hinted at a softer attitude toward US-China relations. However, Fox News Digital's report mentioned that Trump might sign executive orders to increase trade tariffs with China and other countries, which would disrupt global trade and possibly hurt export-driven economies.

 

China’s markets also gained, with the mainland's Shanghai Composite Index and Hong Kong’s Hang Seng index climbing 0.08% and 1.79%, respectively. The People’s Bank of China maintained its benchmark loan prime rate as expected. This move reflected a cautious attitude as policymakers awaited clarity on potential US trade policies. Meanwhile, China signaled readiness for further aggressive stimulus to counteract economic pressures from possible tariff hikes.

 

Additionally, Chipmaking stocks contributed to gains in Chinese markets, as US export restrictions boosted expectations of stronger domestic demands.

 

Elsewhere in Asia, South Korea’s KOSPI closed down 0.14%. As of 4:11 pm SGT, India's Nifty 50 index rose 0.60% following an upbeat open, ending the weekly losses. As of 3:56 pm SGT, Singapore’s Straits Times Index and the FTSE Malaysia KLCI index rose 0.02% and 0.26% respectively.