HONG KONG (AP) - Asian shares mostly advanced on Thursday, following Wall Street's lead, after U.S. President Donald Trump eased tensions by retracting proposed tariffs on eight European countries concerning Greenland and announced he would not use military force to acquire the territory.
The futures for the S&P 500 rose by 0.4% on Thursday, with the Dow Jones Industrial Average futures increasing by 0.3%. In the Japanese market, Tokyo's Nikkei 225 climbed 1.9% to close at 53,760.85. Technology stocks played a pivotal role in this rally, with SoftBank Group surging 11% and chipmaker Tokyo Electron rising 3.7%.
South Korea's Kospi index also posted significant gains, up 2% to reach 5,008.08, marking its highest point above 5,000 for the first time. The technology sector led the rally in South Korea, as shares of Samsung Electronics increased by 3.3%, and SK Hynix rose by 2.3%. Conversely, Hong Kong's Hang Seng index saw a slight decline, falling 0.2% to 26,531.29, while the Shanghai Composite index dropped nearly 0.2% to 4,110.86. In Australia, the S&P/ASX 200 was up 0.7% to settle at 8,841.70, and Taiwan's Taiex jumped 2%. Meanwhile, India’s Sensex rose by 0.7%.
On Tuesday, U.S. markets faced significant losses, recorded as their biggest drop since October, which resulted from Trump’s weekend threats of imposing 10% tariffs on Denmark, Norway, Sweden, Germany, France, the United Kingdom, the Netherlands, and Finland due to their opposition to U.S. claims over Greenland. This situation had raised concerns about deteriorating relations between the U.S. and its European allies. However, attending the World Economic Forum in Davos, Switzerland, Trump stepped back from his aggressive stance on Wednesday, stating he would not resort to military action to take control of Greenland. He also mentioned in a social media post that he had come to a mutual understanding with NATO’s head regarding a “framework for a future deal” about Greenland and Arctic security.
The easing of tensions was beneficial for Wall Street, where on Wednesday, the S&P 500 experienced a notable rise of 1.2%, closing at 6,875. The Dow Jones Industrial Average also gained 1.2%, closing at 49,077.23, while the Nasdaq composite rose by 1.2% to 23,224.82. Halliburton, an oil field services company, surged by 4.1% following its stronger-than-expected quarterly profits. In addition, United Airlines saw a 2.2% rise due to its better-than-anticipated quarterly earnings. In contrast, Netflix shares experienced a decline of 2.2%, despite the company reporting stronger profits than expected, as investors focused on concerns over slowing subscriber growth.
The price of gold decreased by 0.9% to $4,794.70 per ounce, as investor nerves settled after President Trump reversed his position on Greenland. The precious metal had surpassed the $4,800 mark earlier on Wednesday, driven by investors seeking safe-haven assets amid the prevailing uncertainty.
In the bond market, U.S. Treasury yields also eased, which reflected decreased anxiety among investors. This came in the wake of a calming of the tumult impacting Japan's bond market. Japan's long-term bond yields had surged to record highs earlier this week due to Prime Minister Sanae Takaichi's announcement of a snap election set for February. Her proposals to cut taxes and enhance spending raised concerns about mounting government burdens. The yield on the 10-year Treasury note eased slightly to 4.25% from 4.30%.
In commodities, early Thursday trading saw U.S. benchmark crude oil prices rise by 0.3% to $60.79 per barrel, while Brent crude, the international benchmark, increased by 0.2% to $65.35 per barrel. The U.S. dollar also experienced appreciation against the Japanese yen, rising to 158.54 from 158.27. Meanwhile, the euro remained stable at approximately $1.1693.
