Asia markets bounce back after Trump softens stance

January 23, 2026 (MLN): Asian markets opened on a stronger footing, rebounding after remarks by U.S. President Donald Trump eased geopolitical and trade-related concerns.

Risk appetite returned after Trump stepped back from earlier threats of imposing tariffs on European countries over Greenland.

Speaking at the World Economic Forum in Davos, the U.S. president also ruled out the use of military force to acquire the Arctic island, reducing fears of escalating tensions, according to CNBC. 

He noted that a framework for a potential future arrangement on Greenland had been discussed alongside NATO Secretary General Mark Rutte.

South Korean equities led regional gains. The benchmark Kospi advanced 0.87%, briefly crossing the 5,000 level before settling at 4,952.53, while the tech-heavy Kosdaq surged 2% to close at 970.35.

Battery manufacturer Samsung SDI jumped 18.67%, conglomerate Doosan rose 9.09%, and index heavyweight Samsung Electronics added 1.87%.

The upbeat market performance came despite weaker-than-expected domestic economic data.

South Korea’s economy contracted 0.3% quarter-on-quarter in the October–December period, marked its steepest decline since 2022.

On an annual basis, GDP expanded 1.5%, while full-year growth slowed to 1%, the weakest since 2020, when the economy shrank during the pandemic.

Japanese stocks also staged a strong recovery. The Nikkei 225 climbed 1.73% to end at 53,688.89, snapping a five-session losing streak, while the broader Topix index gained 0.74% to 3,616.38.

Earlier in the day, Japan released its December trade data, showing exports grew 5.1% year on year, falling short of market expectations.

Chinese markets recorded modest gains. Hong Kong’s Hang Seng Index edged higher in the final hour of trading, while mainland China’s CSI 300 inched up 0.01% to 4,723.71.

In Australia, the S&P/ASX 200 rose 0.75% to finish at 8,848.7, recovering from losses seen in the previous session.

Wall Street’s strong overnight performance provided additional support to Asian equities. The Dow Jones Industrial Average jumped 1.21%, the S&P 500 advanced 1.16%, and the Nasdaq Composite gained 1.18%, setting a positive tone for markets across the Asia-Pacific region.

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