Asian Stocks Wobble Amidst Trump Trade Uncertainty

Asian stocks started the year weakly with a decrease in investor confidence due to uncertainties surrounding the return of Donald Trump as U.S. President. Concerns over China's economic recovery and U.S. tariff policies added pressure. The U.S. dollar strengthened amid global market fluctuations and Fed rate expectations.

Asian stocks faltered at the start of the new year, reflecting investor apprehensions as Donald Trump prepared to re-assume the U.S. presidency. A jittery closure to 2024 and a hawkish Federal Reserve outlook have set a challenging stage for equities as the dollar surged.

Markets remain wary of Trump's potential economic policies, particularly tariffs on Chinese imports, which could stunt China's economic recovery efforts in 2025. On Thursday, major Asian indices, including Shanghai Composite and Hong Kong's Hang Seng, experienced notable declines amid ongoing market uncertainty.

The U.S. dollar gained traction, highlighted by a 0.3% rise against the yen, as expectations of fewer Fed rate cuts dominated exchanges. Meanwhile, commodities like oil and gold saw minor positive shifts despite the overall jittery market atmosphere.

(With inputs from agencies.)