ASIAN STOCKS RISE AS TRUMP BACKS OFF GREENLAND TARIFF THREATS, WALL STREET RECOVERS

BY COMFORT OGBONNA

Asian shares mostly moved higher on Thursday, following a rebound on Wall Street after U.S. President Donald Trump softened his stance on Greenland-related trade penalties and ruled out using military force to take control of the territory. The shift helped ease market anxiety that had been building over the possibility of another tariff-driven clash between the United States and key European allies, a scenario investors feared could disrupt trade flows and pressure global growth.

U.S. stock futures were calm in early Thursday trading, reflecting a more cautious mood after Wednesday’s sharp bounce. Futures for the S&P 500 were up by less than 0.1%, while Dow Jones Industrial Average futures were virtually unchanged. The muted move suggested investors were steadying themselves after a volatile few sessions that included Wall Street’s heaviest losses since October earlier in the week.

In Japan, Tokyo’s Nikkei 225 surged 1.7% to 53,688.89, powered by a strong rally in technology names. Market sentiment improved as traders regained confidence that global trade tensions would not escalate further for now. SoftBank Group was among the day’s biggest winners, jumping 11.6%, while semiconductor equipment maker Disco Corp. soared 17.1%. Advantest, a major supplier of chip testing equipment, added 5%, as optimism around the broader tech cycle helped lift demand for growth stocks.

South Korea’s market also pushed higher, with the Kospi closing 0.9% up at 4,952.44, after briefly crossing the 5,000 mark for the first time a milestone that traders celebrated as a sign of strong momentum. Technology stocks were again the main driver of gains, reflecting the region’s heavy exposure to the global chip supply chain. Shares of SK Hynix rose 2%, while Samsung Electronics climbed 1.9%, as investors leaned into semiconductor leaders amid improving risk sentiment.

Greater China markets were more restrained but still positive. Hong Kong’s Hang Seng edged up by less than 0.1% to 26,600.68, while the Shanghai Composite also inched higher by about 0.1% to 4,122.58. The modest gains suggested investors remained selective, balancing improved global headlines with ongoing questions about domestic demand and the pace of recovery in the region’s largest economy.

Australia’s S&P/ASX 200 gained nearly 0.8% to 8,848.70, benefiting from the broader “risk-on” tone across markets. Taiwan’s Taiex rose 1.6% on strength in its export-heavy tech sector, while India’s Sensex added 0.2%, continuing its steady grind higher as investors watched both global cues and local corporate trends.

The week’s market swings were fueled in large part by sudden trade fears. On Tuesday, U.S. stocks posted their biggest losses since October after investors reacted to Trump’s weekend threat to impose 10% tariffs on goods from Denmark, Norway, Sweden, Germany, France, the United Kingdom, the Netherlands, and Finland. The proposed move was aimed at countries opposing U.S. control of Greenland, a statement that sent shockwaves through markets already sensitive to trade disputes. Traders worried that escalating friction between Washington and European capitals could spark retaliatory measures and damage investor confidence at a time when growth expectations remain fragile.

However, sentiment turned sharply on Wednesday after Trump, speaking while attending the World Economic Forum in Davos, Switzerland, signaled a retreat. He stated he would not use force to acquire Greenland and later said he had agreed with NATO leadership on a “framework” related to Greenland’s future and Arctic security. While the statement offered few specifics, markets viewed it as a clear reduction in immediate risk, and investors responded by moving back into equities.

That relief translated into strong gains on Wall Street. The S&P 500 climbed 1.2% to 6,875, while the Dow Jones Industrial Average rose 1.2% to 49,077.23. The Nasdaq composite also advanced 1.2% to 23,224.82, as technology shares helped lead the rebound. The rally reflected not only easing geopolitical concerns but also investor focus returning to earnings results and company performance.

Among major movers, Halliburton jumped 4.1% after reporting quarterly profit that topped expectations, offering reassurance that energy-sector demand and margins remain resilient. United Airlines gained 2.2% after also delivering better-than-expected earnings, suggesting travel demand continues to hold up. Netflix, however, slipped 2.2% despite reporting stronger profit than analysts anticipated, as investors appeared more focused on forward-looking concerns such as slowing subscriber growth and the sustainability of its expansion pace.

In commodities, the reduced level of fear showed up in gold prices. Gold fell 0.2% to $4,828.70 per ounce after previously pushing above the $4,800 mark. The decline signaled that some investors were stepping away from safe-haven assets as tensions cooled and the immediate threat of trade escalation seemed to fade.

Bond markets also reflected the shift. U.S. Treasury yields eased as investors felt less urgency to seek shelter in government bonds. The yield on the 10-year Treasury slipped to 4.25% from 4.30% late Tuesday, helped by both improving risk appetite and a reduction in global bond market stress.

In Japan, bond market turbulence had added another layer of uncertainty earlier in the week. Long-term Japanese bond yields climbed to record highs after Prime Minister Sanae Takaichi called a snap election for February, triggering investor concerns about fiscal policy. Traders feared that promises of tax cuts and increased spending could complicate efforts to manage Japan’s massive government debt burden and push yields even higher.

Currency markets were also active. The U.S. dollar strengthened to 158.75 Japanese yen from 158.27 yen, sparking speculation that authorities could consider intervention if the yen weakens further. The euro was slightly higher, rising to $1.1692 from $1.1687, as traders weighed the outlook for U.S.-Europe relations after the Greenland tariff reversal.

Oil prices were modestly lower. U.S. benchmark crude slipped 16 cents to $60.46 per barrel, while Brent crude, the global standard, fell 24 cents to $65.00 per barrel. The small decline suggested traders were balancing improved market sentiment with lingering uncertainty about global demand, especially if future trade disputes or policy shocks resurface.

Overall, Thursday’s gains across much of Asia reflected a market attempting to stabilize after a tense start to the week. While investors welcomed the easing of Greenland-related tariff threats, many remain cautious, knowing how quickly geopolitical headlines can shift sentiment and reshape the outlook for global trade and economic growth.