Asian stocks advanced on Thursday amid easing geopolitical and trade tensions after U.S. President Donald Trump signaled pausing proposed tariffs against eight European countries over Greenland ownership. Analysts said it was yet another classic TACO (Trump always Chickens Out) trade.
Gold was little changed at $4,833 an ounce in Asian trade as fears of the U.S. dollar losing its dominance remained intact. Oil prices traded lower as the glut narrative regained control.
China’s Shanghai Composite index ended up 0.14 percent at 4,122.58 after a choppy session. Hong Kong’s Hang Seng index finished 0.17 percent higher at 26,629.96.
Japanese markets rallied as government bonds rebounded for a second straight session, helping ease global market anxiety.
The Nikkei average soared 1.73 percent to 53,688.89, snapping its five-day losing streak amid gains in semiconductor and artificial intelligence-related shares. The broader Topix index rose 0.74 percent to 3,616.38.
Seoul stocks climbed on eased tensions over Greenland and continued optimism over artificial intelligence-driven demand.
The Kospi average surpassed the historical 5,000-point mark in intraday trading before closing up 0.87 percent at 4,952.53.
Samsung Electronics and SK Hynix both rose around 2 percent while top battery maker LG Energy Solution surged 5.7 percent. Automaker Hyundai Motor fell 3.6 percent and Kia Corp slumped 4.4 percent after recent strong gains.
Investors shrugged off data that showed South Korean GDP unexpectedly contracted 0.3 percent quarter on quarter in the October-December period.
Australian markets rose notably after data showed the unemployment rate in the country unexpectedly fell to a 7-month low in December.
The benchmark S&P/ASX 200 jumped 0.75 percent to 8,848.70 while the broader All Ordinaries index closed 0.70 percent higher at 9,172.50.
Oil and gas producer Santos soared 5.3 percent after reporting robust full-year cash flow and operational performance in 2025.
Northern Star Resources slumped 8.4 percent. The gold miner revised its 2026 financial year production and cost guidance, reflecting a number of one-off operational events across its portfolio in the December 2025 quarter.
Fortescue tumbled 5.1 percent as shipments from the Iron Bridge operations missed consensus estimates.
Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index rallied 1.04 percent to 13,556.87 ahead of the release of Q4 inflation data on Friday.
U.S. stocks ended sharply higher overnight after President Trump called off proposed tariffs tied to Greenland, saying a framework has been formed with Nato for a future deal with respect to Greenland and, in fact, the entire Arctic Region.
He did not provide details but said additional discussions are ongoing. Trump told CNBC shortly after that announcement that “we have a concept of a deal” with Greenland.
The Dow, the S&P 500 and the tech-heavy Nasdaq Composite all rallied around 1.2 percent.
Asian Shares Regain Footing On Trump TACO Trade
2026-01-22 08:43:37
