Global Shares Mixed In Muted Reaction To US Inauguration

Tokyo: Global shares were mixed in a muted reaction Tuesday to the inauguration of US President Donald Trump. France’s CAC 40 gained 0.1 per cent to 7,739.02, while Germany’s DAX was flat at 20,988.89. Britain’s FTSE 100 gained 0.1 per cent to 8,533.10. The future for the S&P 500 was up 0.3 per cent and that for the Dow Jones Industrial Average gained 0.4 per cent. US markets were closed Monday for the Martin Luther King Jr Day holiday.

Hong Kong’s Hang Seng index rose 0.9 per cent to 20,106.55, in part lifted by embattled Chinese property developer Country Garden, whose shares jumped 17.5 per cent after it got a reprieve on its deadline for working out an agreement with its creditors.

The Shanghai Composite index edged 0.1 per cent lower to 3,242.62. Tokyo’s Nikkei 225 index gained 0.3 per cent to finish at 39,027.98, while Australia’s S&P/ASX 200 gained 0.7 per cent to 8,402.40. South Korea’s Kospi slipped less than 0.1 per cent to 2,518.03.

Some analysts said the inauguration would inject optimism into global markets, while others said the threat of higher tariffs might hurt sentiment. Trump’s release of an “America First Trade Policy” memo after he took office Monday indicated he would take no immediate action on raising tariffs, possibly alleviating immediate concerns about threats of double-digit tariffs on all imports.

However the plan calls for a broad reassessment and overhaul of US trade policy. “In a twist that calmed nerves across global markets ... President Trump revealed he would not, contrary to expectations, roll out new tariffs immediately,” said Stephen Innes, managing partner at SPI Asset Management. Worries about the effects of Trump’s policies on China have eased somewhat as both sides have pledged to work to improve relations.

Shares in Fuji Media Holdings, of which major Japanese broadcaster Fuji TV is a part, recouped earlier losses, to finish 2.1 per cent higher.