Asia markets mixed after Trump defense remarks

January 08, 2026 (MLN): Asia-Pacific markets traded mixed on Thursday as investors assessed rising geopolitical risks and digested fresh comments from U.S. President Donald Trump, while taking cues from a weaker close on Wall Street.

Japan’s Nikkei 225 fell 0.69%, weighed down by losses in technology and basic materials stocks.

SoftBank slid 4%, while chipmaking equipment supplier Tokyo Electron dropped 2.9%, dragging the broader market lower. The Topix index eased 0.17%, according to CNBC.

South Korean equities outperformed regional peers, with the Kospi climbing 1.27%, supported by selective buying in large-cap stocks, while the tech-focused Kosdaq edged up 0.1%.

In Australia, the S&P/ASX 200 traded marginally higher amid volatility. BlueScope Steel declined 1.87% after the company rejected a $9 billion takeover bid from Australia’s SGH and U.S.-based Steel Dynamics.

Hong Kong shares came under pressure, with the Hang Seng Index sliding 0.97%, led by losses in technology and materials names.

Lenovo Group fell 3.44%, Kuaishou Technology dropped 2.85%, and Baidu retreated 2.76%. China’s mainland CSI 300 index was largely unchanged.

Indian markets also moved lower, with the Nifty 50 slipping 0.21% and the BSE Sensex down 0.22%.

Market sentiment in Asia remained cautious after Wall Street closed lower overnight.

The pullback followed comments from President Trump targeting the U.S. defense industry.

He said defense companies would not be allowed to issue dividends or conduct share buybacks until concerns over executive pay and production issues are resolved.

U.S. defense stocks declined sharply in response.

Oil prices were mixed after Trump said Venezuela’s interim authorities could transfer up to 50m barrels of crude to the United States, raising concerns over additional global supply.

Brent crude futures fell 0.51% to $60.39 per barrel, while U.S. West Texas Intermediate rose 0.61% to $56.33 per barrel in early Asian trade.

U.S. equity futures were little changed during Asian hours after the S&P 500 snapped a three-day winning streak, ending about 0.3% lower, while the Dow Jones Industrial Average slid 466 points, or roughly 0.9%.

The Nasdaq Composite bucked the trend, gaining nearly 0.2%, supported by a 2.4% jump in Alphabet, which briefly surpassed Apple in market capitalization for the first time since 2019.

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