Asian Shares Display Mixed Performance Amid U.S. Inauguration

TOKYO (AP) — Asian shares experienced a mixed performance in mostly subdued trading on Tuesday, even as investors anticipated a market reaction to the inauguration of U.S. President Donald Trump.

Analysts hold differing views on the potential impact of the inauguration on global markets. While some believe it could bring positive sentiment and optimism, others express concerns that the looming threat of tariffs may dampen economic prospects in Asia. Notably, the U.S. markets were closed on Monday in observance of Martin Luther King Jr. Day.

In Japan, the benchmark Nikkei 225 index fell by 0.1% during morning trading, settling at 38,951.77. Conversely, Australia’s S&P/ASX 200 saw a 0.5% increase, reaching 8,392.80. South Korea’s Kospi index declined by 0.2%, standing at 2,514.06.

Concerns regarding the repercussions of Trump’s policies, particularly towards China, have somewhat eased. Both nations have expressed commitments to improving bilateral relations, and Trump’s initial stance did not suggest immediate action regarding tariffs on Chinese exports to the U.S.

The Hang Seng index in Hong Kong increased by 0.4% to 20,012.25, while the Shanghai Composite index retreated by 0.3% to 3,233.85.

Market sentiment improved when President Trump indicated during his inauguration that he would refrain from implementing new tariffs right away, easing worries across global financial markets. Stephen Innes, managing partner at SPI Asset Management, remarked, “In a twist that calmed nerves across global markets, President Trump revealed he would not, contrary to expectations, roll out new tariffs immediately.”

Additionally, U.S. stock market futures showed upward trends, signaling potential optimism regarding forthcoming executive measures aimed at stimulating the U.S. economy.

However, shares of Fuji Media Holdings, which includes major broadcaster Fuji TV, faced decline in the morning session. This drop was influenced by multiple companies, including Toyota Motor Corp., pulling their television commercials from Fuji TV programs due to an ongoing sex scandal reported by a weekly magazine.

In the energy sector, benchmark U.S. crude saw a decrease of $1.14, settling at $76.74 a barrel. Meanwhile, Brent crude, which serves as the international standard, experienced a slight increase of 13 cents, reaching $80.28 a barrel.

In foreign exchange trading, the weak U.S. dollar appeared to reflect the uncertainty regarding Trump’s tariff policies, leading to moderate currency fluctuations. The dollar fell against the Japanese yen, changing to 155.14 from the previous 155.61 yen. The euro also dipped slightly, costing $1.0389 compared to $1.0419 previously.

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