Asian stocks climb with Korea’s Kospi above 5,000

January 22, 2026 (MLN):  Asian markets traded mostly higher on Thursday, led by a strong rally in South Korea, after U.S. President Donald Trump softened his stance on potential tariffs against European countries and ruled out the use of force to acquire Greenland, easing global risk sentiment.

South Korea’s benchmark Kospi index surged past the 5,000-point milestone, rising nearly 2% in late trade, while the tech-heavy Kosdaq added over 1.7%.

Buying interest was broad-based, with Samsung SDI jumping more than 15%, Doosan gaining about 9%, and market heavyweight Samsung Electronics climbing close to 4%.

The rally came despite mixed domestic economic data. South Korea’s economy contracted 0.3% quarter-on-quarter in the October December period, marking its sharpest decline since 2022.

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

Asian markets were supported by comments from Trump at the World Economic Forum in Davos, where he said Washington would not pursue military action over Greenland.

He also hinted at a possible future framework agreement on Greenland, said it had been developed alongside NATO Secretary General Mark Rutte.

The remarks helped calm fears of renewed geopolitical escalation and trade tensions, according to CNBC.

In Japan, stocks rebounded after recent losses. The Nikkei 225 rose nearly 1.9%, putting it on track to end a five-session losing streak, while the broader Topix index advanced close to 0.9%.

However, Japan’s latest trade data was less supportive, as December exports grew 5.1%, falling short of market expectations.

China and Hong Kong markets underperformed the regional trend.

Hong Kong’s Hang Seng Index edged slightly lower, weighed down mainly by declines in basic materials stocks, while mainland China’s CSI 300 index ended largely flat.

In Australia, the S&P/ASX 200 climbed about 0.7%, recovering some of the losses from the previous session.

Overnight, Wall Street provided a positive lead for Asian markets.

The Dow Jones Industrial Average jumped 1.21%, the S&P 500 gained 1.16%, and the Nasdaq Composite rose 1.18%.

Overall, Asian markets found support from improving global sentiment, with South Korea standing out as the day’s top performer despite ongoing concerns about slowing economic growth.

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