On Monday morning (26 January, 9:30 AM, GMT+7, Bangkok time), major indices in the Asia Pacific traded mixed, reflecting heightened investor caution amid geopolitical developments. The Japanese yen strengthened sharply while gold reached all-time highs as market participants monitored potential currency intervention and trade tensions.
Japan’s currency appreciated after Prime Minister Sanae Takaichi indicated the government could act against excessive yen volatility, driving the yen up as much as 1% to 154.22 per U.S. dollar during Monday trading. The dollar lost ground against all major Group-of-10 currencies, and U.S. equity futures slipped as speculation increased that the U.S. might support any Japanese currency intervention. On Friday, traders noted that the New York Federal Reserve contacted financial institutions to inquire about yen movements, signaling growing official interest.
In addition to currency moves, spot gold breached $5,000 per ounce for the first time as investors favored safe-haven assets in response to ongoing geopolitical uncertainty.
Canadian Prime Minister Mark Carney stated on Sunday that Canada does not plan to negotiate free trade agreements with China, addressing recent remarks from U.S. President Donald Trump, who warned of significant tariffs on Canada should it pursue further trade with the world’s second-largest economy.
Japan’s NIKKEI slumped by 1.85% to 52,852.58. South Korea’s KOSPI dropped by 0.51% to 4,964.60, while Australia’s ASX 200 climbed by 0.13% to 8,860.10.
As for stocks in China, Shenzhen’s SZI decreased by 0.48% to 14,369.84. Hong Kong’s HSI slid by 0.09% to 26,726.73, while Shanghai’s SSEC surged by 0.12% to 4,140.99.
The U.S. stock markets were mixed on Friday as NASDAQ rose by 0.28% to 23,501.24. S&P 500 grew by 0.03% to 6,915.61, while the Dow Jones Industrial Average (DJIA) lost 0.58% to 49,098.71. VIX jumped by 2.88% to 16.09.
As for commodities, oil prices settled higher on Friday, following new sanctions imposed by U.S. President Donald Trump targeting Iranian oil shipping and the deployment of naval forces toward Iran. Brent crude futures finished up $1.82, or 2.8%, at $65.88 per barrel. U.S. West Texas Intermediate crude advanced $1.71, or 2.9%, to settle at $61.07 a barrel.
This morning, Brent crude futures declined 7 cents, or 0.11%, to $65.81 per barrel, and the WTI shrank 5 cents, or 0.08%, to $61.02 per barrel.
Meanwhile, gold futures advanced by 1.91% to $5,074.70 per Troy ounce.
