Asian Shares Show Mixed Performance Amid U.S. Inauguration

Asian shares experienced mixed trading on Tuesday, reflecting a generally muted response to the inauguration of U.S. President Donald Trump. Despite anticipation that the inauguration would lead to a significant market reaction, trading remained subdued across the region.

Analysts are divided on the potential impact of the inauguration. Some believe it could spark optimism in global markets, while others worry that the possibility of incoming tariffs might negatively affect Asian economies. Notably, U.S. markets were closed on Monday in observance of Martin Luther King Jr. Day.

In Japan, the benchmark Nikkei 225 index dipped by 0.1%, settling at 38,951.77. Conversely, Australia's S&P/ASX 200 saw a slight increase of 0.5%, rising to 8,392.80. South Korea's Kospi index faced a minor decline of 0.2%, dropping to 2,514.06.

Concerns about the effects of Trump’s policies on China seem to have eased, as both nations have expressed commitment to improving bilateral relations. Notably, Trump refrained from immediately announcing new tariffs on Chinese exports to the U.S., which has calmed some nerves in the market.

The Hang Seng index in Hong Kong increased by 0.4%, reaching 20,012.25, while the Shanghai Composite index fell by 0.3% to 3,233.85. Stephen Innes, a managing partner at SPI Asset Management, noted, “In a twist that calmed nerves across global markets, President Trump revealed he would not, contrary to expectations, roll out new tariffs immediately.”

On the front of U.S. stock market futures, there appears to be optimism regarding potential executive actions that may stimulate the U.S. economy, as these futures have shown an upward trend.

In corporate news, shares of Fuji Media Holdings, which includes renowned Japanese broadcaster Fuji TV, fell amid a scandal that has seen numerous partners, including Toyota Motor Corp., halt television advertisements tied to Fuji TV programs. The company's stock has fluctuated significantly in recent days due to the unfolding controversy.

In the energy sector, benchmark U.S. crude oil prices dropped by $1.14, trading at $76.74 per barrel. In contrast, Brent crude, the international standard, increased slightly by 13 cents to $80.28 per barrel.

In currency markets, the U.S. dollar demonstrated weakness, attributed to the uncertainty surrounding Trump's tariff policies. Despite this, movements in currency were relatively moderate. The dollar decreased to 155.14 Japanese yen, down from 155.61 yen, and the euro traded at $1.0389, slightly lower than the previous rate of $1.0419.

Asian, Shares, Markets