A stack of Kuwait Times newspapers shows the publication’s front page at a newsstand in Kuwait City on January 21, 2025, with a picture from the inauguration ceremony of Donald Trump as the 47th President of the United States. (Photo by YASSER AL-ZAYYAT / AFP)
Hong Kong, China — Most Asian markets extended a global rally Wednesday as investors gave a cautious welcome to Donald Trump’s first full day in office amid hopes he will take a more cautious approach on trade than initially feared.
Software investment giant SoftBank soared more than nine percent — leading Tokyo-listed chipmakers higher — after the American president said it was included in a new $500-billion venture to build infrastructure for artificial intelligence in the United States.
Article continues after this advertisementHowever, Hong Kong and Shanghai fell after the tycoon warned China could be included in a list of countries to be hit with tariffs on February 1 “based on the fact that they’re sending fentanyl to Mexico and Canada”.
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Traders have been bracing for Trump 2.0 since his re-election in November, with an initial rally — fuelled by hopes for market-boosting measures — giving way to worries he would resume his trade war with Beijing and also target others.
Article continues after this advertisementThere is also a concern that his plans to slash taxes, immigration and regulations will reignite inflation and crimp the Federal Reserve’s ability to cut interest rates.
Article continues after this advertisementTokyo’s Nikkei 225 was the standout performer Wednesday, piling on more than one percent thanks to SoftBank’s advance fuelled by news that it will be part of the Stargate venture along with cloud giant Oracle and ChatGPT-maker OpenAI.
Article continues after this advertisementThe project “will invest $500 billion, at least, in AI infrastructure in the United States” Trump said at the White House.
Japanese chipmakers also rose, with Advantest up more than four percent, while Tokyo Electron and Lasertec gained more than two percent.
Article continues after this advertisementTaipei also enjoyed a big jump, with chip titan and market heavyweight TSMC up more than two percent, while Seoul was also helped by big gains in SK hynix and LS Electric.
There were also gains in Sydney, Singapore, Wellington and Manila.
But Hong Kong lost more than one percent after a six-day run-up as concerns China will be hit with fresh tariffs dealt a blow to confidence. Shanghai also took a hefty hit.
‘No winners’There had been optimism that Beijing would avoid being targeted in an early flurry of duties by the White House after Trump said Monday he would hit Canada and Mexico.
But he broadened his targets Tuesday to include China and the European Union.
When asked how soon these tariffs could be enacted, he said: “Probably February 1 is the date we’re looking at.”
The comments come after Chinese Vice Premier Ding Xuexiang told the World Economic Forum in Davos, Switzerland, that “protectionism leads nowhere and there are no winners in a trade war”.
China saw record exports in 2024, with observers saying they were likely boosted at the end of the year by companies ramping up stockpiles ahead of Trump’s second term.
“China will still need to brace for potential tariffs and that’s going to slow down exports this year,” Frederic Neumann, chief Asia economist at HSBC in Hong Kong, told Bloomberg TV.
The broader gains in Asia came after another rally on Wall Street and records for London and Frankfurt.
“Investors are now cautiously optimistic, focusing on the US’s robust economic indicators, strong earnings reports, and the prospect of lower borrowing costs and increased capital inflows,” said Stephen Innes at SPI Asset Management.
“This blend of factors is expected to propel US stocks higher throughout 2025, barring any unexpected trade escalations.
“In sum, the delay in imposing new tariffs has been widely regarded as a significant positive for markets.”
The yen eased slightly after edging higher recently on expectations the Bank of Japan will hike interest rates at its meeting on Friday.
Oil prices stabilised after tumbling Tuesday in reaction to Trump’s announcement of a “national energy emergency” to ramp up drilling in the United States.
Key figures around 0230 GMTTokyo – Nikkei 225: UP 1.5 percent at 39,604.71 (break)
Hong Kong – Hang Seng Index: DOWN 1.4 percent at 19,821.12
Shanghai – Composite: DOWN 0.9 percent at 3,214.00
The milestone underscores the company’s shift toward replacing cigarettes with smoke-free alternatives such as IQOS.
During his speech at the 2023 Philippine Mineral Industry Environmental Award (PMIEA) in Malacañang, he emphasized the Philippines’ potential as one of the world’s mineral-rich countries.
Euro/dollar: DOWN at $1.0412 from $1.0426 on Tuesday
Pound/dollar: DOWN at $1.2336 from $1.2342
pkv slotDollar/yen: UP at 155.67 yen from 155.50 yen
Euro/pound: DOWN at 84.41 pence from 84.45 pence
West Texas Intermediate: DOWN 0.1 percent at $75.73 per barrel
Brent North Sea Crude: FLAT at $79.27 per barrel
New York – Dow: UP 1.2 percent at 44,025.81 (close)
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London – FTSE 100: UP 0.3 percent at 8bbc or big baller club,548.29 (close)
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