Asian Markets Mixed Amid US Trade Policy Uncertainty

 

Asian markets were a mixed bag on Tuesday (Jan.21), due to ongoing uncertainty about the foreign trade outlook. While investors reacted positively to US President Trump's lack of immediate tariffs imposition on China, they worried about Trump's future trade policies.

 

In China, the mainland's Shanghai Composite index decreased slightly by 0.054%, while Hong Kong’s Hang Seng index climbed 0.91%, reflecting the integration of hope and fear. Trump signed an order to review trade practices and terms between the US and other countries instead of imposing direct tariffs. The order greatly increased market speculation that the US would increase trade tariffs against China. Markets also expected China to present more stimulus to counter the US trade crackdown.

 

 

Unlike China, Japan's market rose amid trade concerns, The Nikkei 225 index closed up 0.32%. The Bank of Japan will make the rate decision this week. The BOJ signaled a rate hike in recent remarks. Investors worried that a rate hike would strengthen the yen, potentially dampening Japan’s export-driven market.

 

Elsewhere, South Korea's KOSPI closed down 0.08%. As of 4:48 pm SGT, India’s Nifty 50 index slid 0.75% after opening lower. As of 4:33 pm SGT, Singapore’s Straits Times index dropped 0.24%. FTSE Bursa Malaysia KLCI index rose 0.49%.