Asia markets weaken on renewed U.S. tariff uncertainty

January 21, 2026 (MLN): Asia markets moved lower on Wednesday following fresh tariff threats from U.S. President Donald Trump, weakening global risk sentiment.

Hong Kong equities edged down, with the Hang Seng Index slipping 0.12%, while mainland China’s CSI 300 managed a modest 0.11% gain.

In Japan, stocks came under heavier pressure: the Nikkei 225 dropped 1.28% and the broader Topix fell 1.09%.

South Korean markets also weakened, with the Kospi declining 1.09% and the tech-heavy Kosdaq tumbling 2.2%.

Australia’s benchmark S&P/ASX 200 closed 0.34% lower, CNBC reported.

Market nerves were triggered by Trump’s remarks over the weekend, in which he warned that exports from eight European nations could face a 10% tariff starting Feb. 1, escalating to 25% by June if negotiations fail to result in U.S. control over Greenland, citing its strategic and mineral value.

Europe have pushed back strongly against the latest tariff threats, describing them as unacceptable.

Despite the global unease, U.S. stock futures ticked slightly higher during early Asian trading hours, following a sharp sell-off on Wall Street overnight.

In the previous U.S. session, the Dow Jones Industrial Average plunged 870.74 points, or 1.76%, to close at 48,488.59.

The S&P 500 fell 2.06% to 6,796.86, while the Nasdaq Composite dropped 2.39% to end at 22,954.32.

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