Asian Stocks Open Cautiously, "Greenland Tariff War" Shakes Markets
Asian stock markets are expected to start trading cautiously, after US President Donald Trump's tariff threats on Greenland re-escalated trade tensions and dampened investor appetite for riskier assets. Index futures for Japan and South Korea fell slightly, while Hong Kong tended to strengthen, and Australian stocks opened lower.
Global sentiment was already under pressure on Monday, when European stocks posted their biggest daily decline since November while US markets were closed. In futures markets, S&P 500 futures fell around 0.9%. At the same time, investors flocked to safe havens: gold, and silver closed trading at a record high.
In currency markets, the dollar weakened around 0.3%, with the Swiss franc performing the strongest. The yen held relatively steady in early trading on Tuesday after Japanese Prime Minister Sanae Takaichi officially called early elections next month, adding a new layer of communication for the Japanese market.
Trump had previously threatened to punish countries that rejected the Greenland plan, reigniting the volatility that had emerged early in his second term. Europe has begun discussing retaliatory measures, including tariffs on €93 billion worth of US goods. France is said to be pushing for the activation of the EU's "anti-coercion instrument," but Germany is reportedly more cautious due to its dependence on exports.
The bond market also wobbled. Ten-year US Treasury futures fell, leading to a slight increase in yields. In Japan, investors were closely monitoring government debt following the election announcement, as yields had previously surged on rumors of tax cuts. On the Asian geopolitical front, tensions escalated after China sent a military drone into Taiwanese airspace for the first time—a move seen as a test of Taiwan's defenses. (asd)
Source: Newsmaker.id
