Asia-Pacific markets mixed as traders assess Trump's 1st day in office and tariff concerns

Asia-Pacific markets trade mixed on Tuesday, as market participants took a cautious stance amid concerns about additional tariffs following Trump's announcement of a 25% tariff on Canada and Mexico and hints at stricter tariffs on China, without a timeline. Bitcoin ( BTC-USD ) retreated toward $100,000 on Tuesday, after reaching a record high of over $109,000 in the previous session, as volatility persists following Donald Trump’s inauguration as the 47th President of the United States. Japan ( NKY:IND ) rose 0.16% surpassing 39,000, while the broader Topix Index added 0.35% , reaching 2,720 on Tuesday, extending gains from the previous session. The Japanese yen strengthened past 155 per dollar on Tuesday, reaching a one-month-high amid bets that the Bank of Japan would raise interest rates this week following hawkish comments from central bank officials. China ( SHCOMP ) fell 0.17% to 3,240, while the Shenzhen Component dropped 0.2% to 10,240 on Tuesday, snapping a three-day rally. The offshore yuan weakened to around 7.28 per dollar, reversing a strong 1.1% gain from the previous session on the Trump tariff threat. Trump's comments on tariffs on China and TikTok's US operations disappointed traders, overshadowing a recent phone call between Xi Jinping and Trump, which initially aimed to ease tensions between the two countries. Hong Kong ( HSI ) rose 0.82% to 20,067 on Tuesday morning, marking the sixth session of gains while holding at its highest in three weeks. India ( SENSEX ) fell 0.95% to 76,360, while the Nifty 50 dropped 0.8% in early deals on Tuesday, halting gains from the previous session, mainly weighed down by the consumer durables, realty, financial services, and banking sectors. Australia ( AS51 ) rose 0.66% on Tuesday, closing at 8,402 and marking its highest level in six weeks. The benchmark KOSPI fell 0.5% to 2,509 on Tuesday, marking its third consecutive session of losses, largely driven by sharp declines in battery stocks. Domestically, economic data revealed that producer inflation accelerated to 1.7% year-on-year in December 2024, from 1.4% in the previous month, marking the highest level since July. In the U.S., stock and bond markets remained closed on Monday for the Martin Luther King Jr. holiday. U.S. stock futures gained on Tuesday after Donald Trump was inaugurated as the 47th President of the United States, promising a “golden age” for the nation: Dow +0.26% ; S&P 500 +0.13% ; Nasdaq +0.05% . The President announced a batch of executive orders on his first day in office, including measures to increase energy production, but refrained from announcing any trade barriers. On the corporate front, key earnings reports are expected this week from major companies, including Netflix, Charles Schwab, Procter & Gamble, Johnson & Johnson, Abbott Laboratories, General Electric, Union Pacific, American Express, and Verizon. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: People's Bank of China keeps one and five-year loan prime rates unchanged in Jan, as expected China shows strongest GDP growth in over a year Australia's unemployment rate ticks higher to 4% in December Bank of Japan to discuss interest rate hike next week - deputy chief China's trade surplus beats expectations, helped by exports