On Tuesday morning (20 January, 9:43 AM, GMT+7, Bangkok time), major indices in the Asia Pacific decreased across the board as yields on Japan’s long-term government bond reached new highs. Investors also considered the impact of escalating tensions between the United States and European nations over U.S. demands regarding Greenland.
Political developments in Japan also influenced sentiment, with Prime Minister Sanae Takaichi announcing plans to dissolve parliament and schedule a snap election for February 8. Fitch Group noted that heightened political uncertainty could be offset if the election results produce a government with clearer policy clarity.
Meanwhile, in China, the People’s Bank of China maintained its 1-year and 5-year loan prime rates at 3% and 3.5%, respectively, for the eighth consecutive month, aligning with market expectations.
President Donald Trump declared over the weekend that the United States would impose a 10% tariff on select goods from eight European countries starting February 1, rising to 25% by June 1 unless negotiations yield U.S. control over Greenland, which is under Danish sovereignty.
Japan’s NIKKEI dropped by 1.21% to 52,933.30. South Korea’s KOSPI declined by 0.70% to 4,870.57, and Australia’s ASX 200 lost 0.63% to 8,818.90.
As for stocks in China, Shanghai’s SSEC shrank by 0.74% to 4,083.73. Shenzhen’s SZI slumped by 1.70% to 14,050.78, and Hong Kong’s HSI fell by 0.68% to 26,384.12.
The U.S. stock markets edged down on Monday as the Dow Jones Industrial Average (DJIA) dipped by 0.17% to 49,359.33. NASDAQ slid by 0.06% to 23,515.38, and S&P 500 decreased by 0.06% to 6,940.01. VIX jumped by 18.79% to 18.84.
As for commodities, oil prices moved slightly higher on Tuesday following an easing in Iran unrest, which reduced concerns about a potential U.S. military strike that could affect supplies. Meanwhile, markets were closely watching developments related to a dispute over Greenland. Brent crude futures rose 2 cents, or 0.03%, to $63.96 per barrel, and the WTI increased 25 cents, or 0.42%, to $59.69 per barrel.
Meanwhile, gold futures soared by 1.81% to $4,678.50 per Troy ounce.
