Asian shares mostly declined on Tuesday, despite a rally on Wall Street fueled by stocks seen as benefiting from Donald Trump’s reelection as U.S. president. Japan’s Nikkei 225 reversed early gains to fall 0.4%, weighed down by uncertainty about how Trump’s policies, including tariffs, may affect local industries. Australia’s S&P/ASX 200 lost 0.1%, while South Korea’s Kospi declined 1.9%.
Chinese tech stocks have been falling lately, and investors are also watching upcoming earnings reports out of China. Hong Kong’s Hang Seng dropped 2.8% to 19,846.88, the first time the index fell below 20,000 points since China announced a stimulus package in September. The Shanghai Composite lost 1.4%.
Several pieces of what’s known as the “Trump trade” have helped drive the U.S. market, as investors try to identify which companies will be winners under a second Trump term. Stocks of companies more focused on the U.S. economy were also rising because they’re seen as benefiting more from Trump’s America First policies than big multinational companies. In energy trading, benchmark U.S. crude rose 17 cents to $68.21 a barrel.
Brent crude, the international standard, gained 20 cents to $72.03 a barrel. The U.S. dollar edged up to 153.91 Japanese yen from 153.72 yen. The euro cost $1.0630, down from $1.0660.
Traders in Asia-Pacific also assessed various economic data from the region. The National Australia Bank released a survey on business conditions, and Indonesia’s September retail sales were reviewed.
asian shares dip amid Wall Street rally
India is expected to release its consumer price index reading for October later in the day, and the oil cartel OPEC will unveil its monthly oil market report. Softbank is expected to announce a profit of 286.8 billion yen ($1.86 billion) for the second quarter, ending September, marking over 100% year-on-year growth. The Japanese technology investor company also booked a 1.9 billion yen ($12.9 million) investment gain on its Vision Fund tech investment arm.
Softbank Group’s shares have surged 52.19% year-to-date. Australian consumer sentiment grew for the second consecutive month in November, according to a survey by the Westpac-Melbourne Institute index, showing a 6.2% climb compared to October. Australian business confidence in October rose to its highest level since early 2023, with the index advancing from -2 in September to +5 in October.
President-elect Donald Trump’s return to the White House has sent ripples through global financial markets. The Republican sweep of the presidency and, potentially, both houses of Congress, has triggered what analysts call the return of “Trump trades,” which are expected to reshape the investment outlook. Wall Street banks are closely monitoring the potential impact of Trump’s win on U.S. bonds, Asian and European stocks, and currencies.
Markets are adjusting their expectations regarding China’s stimulus measures. Shamaila Khan, head of fixed income for emerging markets at UBS Asset Management, noted that investors are looking for significant figures, but China has been implementing stimulus in a slow and measured way, promoting stability. This approach may lead to significant upside for Chinese bonds.
Federal Reserve Chair Jerome Powell was ready to contest any efforts by former President Donald Trump to remove him from his position. Reports indicated that Powell might have had to use his personal funds for such a challenge as the Fed may not have standing to address such issues legally.
