Asian equities followed Wall Street’s strong finish, with major indices across the region posting gains ahead of Donald Trump’s inauguration. Investor optimism over potential fiscal stimulus and economic reforms under the incoming administration has boosted risk sentiment, despite lingering uncertainties about specific policy details.
Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index led the advances, supported by robust performances in technology and financial stocks. The upbeat mood was further fueled by expectations of infrastructure spending and corporate tax cuts, which have bolstered market confidence since Trump’s election win.
Despite the gains, some traders remain cautious, noting that thin trading volumes and political uncertainty could spark volatility. Asian markets are particularly sensitive to any shifts in U.S. trade policy, with China and export-driven economies closely watching Trump’s stance on tariffs and global trade relations.
Looking ahead, global markets are poised for further reaction to Trump’s inaugural speech and early policy decisions. Investors are balancing optimism over potential growth-boosting measures with concerns about geopolitical risks and the longer-term implications of protectionist policies.
