Mixed Asian market performance after Trump’s announcement of a 25% tariff on all steel and aluminium imports:
Hang Seng surged +1.5%, driven by tech stocks- Shanghai Composite gained +0.4%
Nikkei slipped -0.1%- ASX 200 fell -0.4%
Trump plans reciprocal tariffs 
to match other countries’ trade rates. The EU warned of a swift response, while Canada 
, the top US aluminium supplier, expressed concerns about supply chain disruptions.
Chinese tech rally 
despite trade tensions:
Beijing is reportedly preparing retaliatory measures targeting US tech giants with antitrust probes 
, with Apple, Nvidia, Broadcom, and Synopsys under potential scrutiny.
Dollar strengthens 
+0.2% amid concerns over inflation from tariffs.
- JPY fell -0.4% to ¥151.98 despite recent hawkish comments from the BOJ.
- CNY weakened past 7.3 per dollar, hitting a 3-week low.
Commodities Update:
Brent at $75.06, WTI at $71.40 (+), snapping a 3-week decline
Gold rose near $2,881/oz, driven by safe-haven demand
China’s Central Bank continues gold purchases for the third month in a row.
Japan’s 2024 current account surplus hit a record ¥29.3 trillion ($193B), boosted by strong overseas investment returns despite trade and services deficits.
Upcoming events:
Fed Chair Powell to testify before Congress on Tuesday and Wednesday. Markets await his take on trade policy and inflation.
January CPI data to be released during Powell’s second day of testimony.
Trump announced plans to halt penny production 
due to high manufacturing costs (3.7 cents per coin), following recommendations from Musk’s Department of Government Efficiency team.
Stay tuned for more updates! 
