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Investing.com – Most Asian stocks rose on Monday amid hopes that US President-elect Donald Trump will not deliver as harsh a speech on China as had been feared. when he took office later in the day.
Regional stocks led the way from Wall Street on Friday, as a slew of positive bank earnings and growing hopes for interest rate cuts fueled strong gains in US stocks.
US stock futures were flat in Asian trading on Monday, falling slightly amid some concern about Trump. US markets will also be closed on Monday for Martin Luther King, Jr. Day.
Asian stocks rise amid Trump predictions
Most Asian stocks rose, with shares in Japan and Hong Kong leading the way. Japan’s index and index rose 1.5% each, while Hong Kong’s index added 1.6%.
Hopes of tough talk against China grew after Trump did not mention his plans for trade tariffs during a victory rally in Washington on Sunday. But the President-elect reiterated plans to restrict immigration and reduce government oversight of domestic companies.
Fox News Digital reported that Trump was planning to sign a large number of executive orders when he took office on Monday, some of which could still include additional trade tariffs against China.
The president-elect has vowed to impose duties of up to 60% on all Chinese goods, while targeting Mexico and Canada with higher tariffs.
Such a move has the potential to disrupt global trade, and wreak havoc on foreign-driven economies.
Chinese shares rise as PBOC keeps rates unchanged
China and the index rose by 0.8% and 0.5%, respectively.
The People’s Bank of China kept its interest rate unchanged as expected on Monday, as Beijing looks to keep its powder dry as it seeks more clarity on Trump’s plans. of business charges.
China is expected to offer even stronger stimulus measures to offset the economic fallout from any potential tariff hikes. Trump’s tariffs are expected to put even more pressure on China’s economy, as it faces a prolonged recession and stock market slump.
However, data released last week showed some improvement in China’s economy, after Beijing released its strongest stimulus measures yet until the end of 2024.
Chinese markets have also been boosted by recent gains in chipmaking, as increased US export controls in the sector have fueled speculation that local firms will benefit from demand. more local.
Broader Asian markets were higher on Monday, although gains were largely offset by pre-Trump caution. Apart from the inauguration of the President of the United States, the focus this week is also a series of important economic figures, as well as the meeting of the Bank of Japan.
Australia rose 0.2%, while India’s index pointed to a softer open, after the index posted sharp losses last week.
Singapore’s index fell, down 0.3%, while South Korea traded flat. Any disruptions in global trade could affect both economies significantly, given their reliance on imports.
