Business
Asian Stocks: Asian stocks gain after Trump touts Greenland deal
Shares advanced in Japan, South Korea and Australia, signaling a regional equities gauge was set to break a three-day losing streak. That came after US indexes jumped on indications that new tariffs won’t be imposed on European countries. Equity-index futures for US benchmarks rose over 0.2% in early Asian trading, suggesting stocks may extend their advance.
Precious metals retreated with gold falling as much as 1% and silver as much as 2%. Bitcoin traded below $90,000 as a sweeping US crypto market bill is likely to be delayed by at least several weeks.
Elsewhere, yields on 10-year Treasuries were steady in early Asian trading after falling five basis points to 4.24% in the US session as bond-market volatility eased. A $13 billion auction of 20-year bonds in the US met solid demand. The dollar edged higher.
Risk appetite returned to equities after Trump ruled out using military force and said he would refrain from imposing tariffs on European nations opposing his effort to take control of Greenland. Investors interpreted the remarks at the World Economic Forum in Davos as a sign of easing geopolitical and trade tensions.
“The framework of the Greenland deal takes down the temperature a lot, given the happenings over the weekend,” said Joe Gilbert, portfolio manager at Integrity Asset Management. “Less tariffs is unequivocally a positive for markets.”
The S&P 500 climbed 1.2% Wednesday, erasing its losses for the year, while an index of Chinese companies listed in the US gained 2.2%. The Nasdaq 100 jumped 1.4%. Small caps beat the US equity benchmark for a 13th straight session. Big tech also rose.Trump’s decision marks a stark reversal for a president who has repeatedly attempted to coerce Europe over Greenland. It came after a meeting with North Atlantic Treaty Organization Secretary General Mark Rutte in Davos.
Still, Trump did not detail the parameters of the so-called “framework” and it was unclear what the agreement entails, especially since Denmark earlier on Wednesday ruled out negotiations over ceding the semi-autonomous island to the US.
Treasury Secretary Scott Bessent encouraged US allies enraged by Trump’s threats to “sit back” and “take a deep breath,” avoiding retaliation. Commerce Secretary Howard Lutnick foreshadowed the retreat during a Davos panel, telling the assembled world leaders and business titans that the situation was “going to end in a reasonable manner.”
