HONG KONG, Jan 14 (AFP): Asian markets diverged Tuesday as bargain buying after recent losses played against ongoing worries about the outlook for the global economy and the impact of a second Donald Trump presidency.
A report saying the incoming US leader's economics team was considering slowly hiking tariffs on imports provided support to traders and put a cap on the dollar's latest surge, while news of fresh curbs on AI chips to China appeared to have little immediate impact.
However, traders remain concerned that his pledges to cut taxes, regulations and immigration continue to dampen sentiment with warnings that the measures will revive inflation.
Wall Street staged a small recovery Monday, with the Dow and S&P ending in positive territory, but tech titans including big-hitter Nvidia dragged the Nasdaq down again.
Asian markets fluctuated through the day.
Hong Kong and Shanghai advanced as China's securities regulator said it was looking at ways to provide more stability to markets after another run of poor performances sparked by worries over the world's number two economy and Trump's threatened tariffs.
Sydney, Seoul, Wellington, Taipei and Mumbai also rose, though there were losses in Singapore, Manila, Bangkok and Jakarta, with Tokyo the biggest loser as traders returned from a long weekend to play catch-up with Monday's sell-off.
Paris and Frankfurt rose at the open, while London was flat.
The dollar eased back against its peers after Bloomberg reported that members of the US president-elect's team were looking at a gradual increase in tariffs in a bid to boost their negotiating hand and tamper inflationary pressures.
Traders were spooked when he said soon after his re-election that he would impose huge levies on China, Canada and Mexico as soon as he took office.
But while the dollar eased, the pound remained stuck at levels not seen since the end of 2023. The euro was near its weakest since late 2022, with fears it could return to parity with the dollar.
The yen edged up against the greenback as the yield of Japan's 40-year government bond hit its highest since being launched in 2007, with debate returning to whether the country's central bank will hike interest rates at next week's policy meeting.
