Asia Market Quick Take – January 22, 2026

Asia Market Quick Take – January22, 2026

Key points:

• Macro: Trump rules out military action to takeover Greenland; Framework formed for deal
• Equities: S&P 500 up 1.2%, biggest gain since November
• FX:USD rose after Greenland tariff delay; CHF and EUR struggled amid speculation
• Commodities: Gold fell after hitting record high $4,888
• Fixed income: Long-end Treasuries rallied; curve bull-flattened

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Disclaimer: Past performance does not indicate future performance.

Macro: 

• Trump announced a framework agreement with NATO Secretary General Mark Rutte regarding Greenland, thus forgoing punitive tariffs on European nations. Earlier, at the World Economic Forum in Davos, he stated he wouldn't pursue acquiring Greenland by force.However, Denmark rejected Trump's request to negotiate a US takeover of Greenland.
• US pending home sales dropped 9.3% in December 2025, the largest decline since April 2020, and ended a four-month gain streak. All regions fell, notably the Midwest (-14.9%) and West (-13.3%), with a 3.0% year-over-year decrease. NAR Economist Lawrence Yun cited low inventory and hesitant buyers as factors.
• South Korea's economy contracted 0.3% QoQ in Q4 2025, missing the expected 0.1% growth. Domestic demand weakened, non-semiconductor exports fell 1%, and construction investment dropped 3.9%. Exports were down 2.1%, and imports decreased 1.7%. The economy grew 1.5% YoY, falling short of the 1.8% forecast.
• Canada's producer prices fell 0.6% MoM, with decreases in energy and petroleum prices contributing to the steepest drop in seven months. Lumber prices also fell, while non-ferrous metal prices rose. In December 2025, year-on-year producer prices increased 4.9%, down from November's 5.9%.
• Japan's trade surplus decreased to JPY 105.7 billion, missing the expected JPY 357 billion. In December 2025, exports grew 5.1% year-on-year to JPY 10,411.5 billion, while imports rose 5.3% to JPY 10,305.8 billion, reflecting strong year-end demand.

Equities:

• US -Risk appetite returned as hopes for a tariff‑free resolution to Trump’s Greenland ambitions lifted Wall Street, sending stocks and bonds higher while gold cooled; the S&P 500 rose 1.2%—its biggest since November—with all sectors up, energy at records, small caps outperforming for a 13th day, big tech rallying, and over 400 constituents advancing.Apple will turn Siri into a ChatGPT‑style chatbot in an overhaul slated for the second half of 2026, with the tool—codenamed Campos—embedded across iPhone, iPad and Mac operating systems, according to people familiar with the matter.GameStop rose 3% in after-hours trading after Chairman and CEO Ryan Cohen disclosed a purchase of 500,000 shares, lifting his stake to 9.3% from 9.2% reported in a 13D/A filed on 20 Jan 2026. Asian markets in Japan, South Korea and Australia also gained, pointing to a regional rebound after three down days.
• EU -The STOXX 50 fell 0.9% and the STOXX 600 declined 0.6%, marking a fourth session of losses due to U.S. tariff tensions and Trump's Greenland ambitions affecting sentiment. Investors are watching Trump's World Economic Forum appearance for policy signals. Large-cap stocks led the decline, including ASML Holding (-0.9%), SAP (-2.0%), Novo Nordisk (-2.3%), HSBC (-1.2%), and AstraZeneca (-1.1%). Conversely, LVMH rose 1.7% after a losing streak, with ThyssenKrupp (+5.5%), Burberry (+5.4%), and Rio Tinto, which gained nearly 5% on strong quarterly production results, among the top performers.
• HK - Hang Seng rose 0.4% to 26,585, ending a four-session losing streak with tech and consumer stocks leading gains. U.S. futures provided support before President Trump's World Economic Forum speech. In China, stocks improved as regulators tackled market volatility and misleading disclosures, boosting confidence. Gains were tempered by caution over upcoming Hong Kong inflation data and Q1 business sentiment. China Vanke jumped 4.6% after bondholders delayed repayment on a CNY 1.1 billion bond, while ASMPT rose 4.3% as it evaluated strategic options for its technology segment.

Earnings this week:

• Thursday - Procter & Gamble, GE Aerospace, Intel, Abbott
• Friday - SLB (formerly Schlumberger), Ericsson, Comerica

FX:

• USD rose as President Trump announced a decision to refrain from imposing tariffs on European goods opposing his Greenland plan, citing a "framework of a future deal." Despite a lack of detailed agreement, this news boosted the Bloomberg Dollar Spot Index by 0.1% after earlier losses. Analysts hint at potential short-term geopolitical risks that could affect the dollar, leading to possible weakening in Q1 due to increased USD hedging demand.
• CHF and EUR struggled, with the franc seeing its largest two-month drop among G10 currencies due to U.S. involvement in Greenland's mineral rights. Speculation about Trump backing down (TACO) suggests a return to risk buying, as investors consider joint U.S.-NATO administration strategies impacting currency dynamics.
• AUD and NZD led G10 gains as short-term geopolitical risks eased, despite a reversal in metal gains. CAD remained flat, while the yen JPY and GBP experienced modest losses.
• GBP faced brief pressure from December's CPI report, where the Services Y/Y acceleration was below expectations, amid factors like holiday airfare hikes and tobacco budget changes. GBPUSD is around 1.3420.

Commodities:

• Oil steadied as Greenland tensions eased and traders tracked supply issues from Kazakhstan to Venezuela, with WTI above $60 and Brent near $65 after Trump said he would hold off on Europe tariffs amid a framework agreement on the Arctic island.
• Gold slipped up to 1% in early trade after its record above $4,888 on Wednesday, as President Trump withdrew his European tariff threat and said a “framework of a future deal” over Greenland had been reached—announced on social media after meeting NATO Secretary‑General Mark Rutte, with no further details.

Fixed income:

• Treasuries’ long end rallied and the curve bull‑flattened, recouping much of Tuesday’s losses after Trump touted a Greenland “framework” and held off on tariffs, with strong 20‑year auction demand supporting the move as dollar swap spreads jumped, fully unwinding Tuesday’s tightening.

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