Asia markets slip on geopolitical tensions, China data

January 19, 2026 (MLN): Asia markets mostly traded lower on Monday, as investors digested escalating geopolitical tensions involving the United States and Europe alongside a fresh batch of key economic indicators from China.

Market sentiment was dented after renewed rhetoric from U.S. President Donald Trump over the weekend regarding Greenland.

Trump reportedly threatened tariffs on eight European countries and reiterated demands for control of the Arctic territory, which is part of Denmark.

European leaders swiftly rejected the remarks, describing them as “unacceptable” and “completely wrong,” adding to global political uncertainty, according to CNBC.

In Asia, China was in focus after releasing its fourth-quarter GDP data along with December figures for retail sales, industrial output and fixed asset investment.

While the data provided insight into the world’s second-largest economy, it failed to lift broader market confidence.

Hong Kong’s Hang Seng Index declined 1.05%, while mainland China’s CSI 300 slipped marginally.

Japanese equities led regional losses, with the Nikkei 225 falling 0.97% and the broader Topix down 0.47%.

Adding to pressure on Japanese stocks, long-term Japanese Government Bond (JGB) yields surged to multi-decade highs.

The benchmark 10-year JGB yield climbed to 2.244%, its highest level since 1999, while yields on 20- and 30-year bonds also touched record levels.

South Korean markets bucked the regional trend. The Kospi advanced 0.81%, while the tech-heavy Kosdaq rose 0.68%. Shares of Hyundai Motor were a standout performer, jumping as much as 12.59% intraday to hit a record high.

Australian equities moved lower, with the S&P/ASX 200 shedding 0.48%, weighed down primarily by weakness in technology stocks.

In commodities, precious metals rallied sharply as investors sought safe-haven assets amid rising geopolitical and market uncertainty.

Spot silver surged more than 3.6% to a record $93.17 per ounce, while gold climbed 1.58% to trade around an all-time high of $4,668.19 per ounce.

U.S. markets ended lower on Friday, capping a weak week for equities. The S&P 500 finished just below flat and recorded a weekly loss, while the Nasdaq Composite slipped 0.06%. The Dow Jones Industrial Average declined 0.17%.

Stocks came under pressure after President Trump commented that National Economic Council Director Kevin Hassett may remain in his current role and might not be selected as the next Federal Reserve chair.

Markets have viewed Hassett as a more dovish and market-friendly candidate compared to the current frontrunner, former Fed Governor Kevin Warsh, who is perceived as less inclined toward keeping interest rates low.

The remarks added to uncertainty around the future direction of U.S. monetary policy, contributing to cautious sentiment across global markets.

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