Market Commentary - Foreign Markets
28-Jan-2025 15:28
Japan's Nikkei ends down 1.39%
Tariff worries persisted, with U.S. President Donald Trump's Treasury secretary pick, Scott Bessent, pushing for new tariffs and warning of a 'calamity' for middle-class Americans, if tax cuts expire at the end of this year.
The dollar strengthened against peers after Trump said he plans to impose sweeping tariffs on steel, aluminum, copper, semiconductor, and pharma imports in a push to increase U.S. production of the products.
Gold held steady in Asian trade as investors awaited cues from this week's Fed and ECB meetings.
Oil recovered some ground but hovered near a two-week low after the release of weak economic data from China.
Japanese markets led regional losses amid a rout in technology shares battered by concerns over a recently launched Chinese artificial intelligence model.
The Nikkei average tumbled 1.39 percent to 39,016.87 while the broader Topix index settled marginally lower at 2,756.90.
Softbank, an investment firm with major holdings in the technology sector, fell 5.2 percent while Advantest plummeted 11.1 percent and Tokyo Electron shed 5.7 percent.
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