HONG KONG – On Wednesday, most Asian stock markets continued to face declines, while gold prices soared to new heights. Investor apprehension was fueled by U.S. President Donald Trump’s recent tariff threats concerning Greenland.
After significant downturns on Wall Street the previous day, U.S. futures showed signs of recovery. The S&P 500 future climbed 0.3%, and the Dow Jones Industrial Average future increased by 0.2%.
Gold breached the $4,800 threshold for the first time, marking a 1.7% rise. This spike in the precious metal’s value was driven by investors seeking secure assets amidst the prevailing uncertainties.
Market participants were keenly awaiting President Trump’s address at the World Economic Forum in Davos, Switzerland, where global leaders and influential figures gather. Trump indicated his intention to emphasize the achievements of his administration during his speech.
Trump’s journey to Davos encountered a delay when Air Force One returned to Washington due to a “minor electrical issue.” A replacement aircraft was arranged to continue the trip.
In the Asian market, Tokyo’s Nikkei 225 index fell by 0.7%, closing at 52,603.44. This drop in Japan’s market was attributed to both global tensions and internal economic challenges.
Japanese Prime Minister Sanae Takaichi has called a snap election for Feb. 8, sending yields of long-term government bonds to record levels. The assumption is that Takaichi, who is capitalizing on strong public support ratings to try to consolidate a majority for her Liberal Democratic Party, will cut taxes and boost spending, adding to the challenges Japan faces in handling its massive government debt.
The yield on the 40-year Japanese government bond was trading at 4.095% early Wednesday, down from the all-time high of 4.22% that it hit on Tuesday.
South Korea’s Kospi shed 0.5% to 4,862.17.
Hong Kong’s Hang Seng slipped 0.2% to 26,435.20. The Shanghai Composite index edged 0.2% higher, to 4,120.10.
In Australia, the S&P/ASX 200 gave back 0.4% to 8,781.70.
Taiwan’s Taiex fell 0.9%, and India’s Sensex edged up 0.1%.
Trump has said he will impose 10% tariffs on Denmark, Norway, Sweden, Germany, France, the United Kingdom, the Netherlands and Finland beginning in February. That would be on top of a 15% tariff specified by a trade agreement with the European Union that has yet to be ratified.
European leaders have hit back as Washington’s relations with its Western allies sour, considering countermeasures, including perhaps slow-walking ratification of the trade agreement or ordering retaliatory tariffs, analysts say.
The U.S. president had linked his position on Greenland to him not being awarded the Nobel Peace Prize last year, as he told Norway’s prime minister he no longer felt “an obligation to think purely of Peace.”
On Tuesday, the S&P 500 fell 2.1% to 6,796.86, the steepest drop for the benchmark index since October.
The Dow Jones Industrial Average dropped 1.8% to 48,488.59. The Nasdaq composite fell 2.4% to 22,954.32.
Nvidia, one of the world’s most valuable companies, fell 4.4%. Apple dropped 3.5%. Retailers, banks and industrial companies also suffered steep losses. Lowe’s fell 3.3%, JPMorgan Chase fell 3.1%, and Caterpillar lost 2.5%.
The Federal Reserve is set to meet next week for its policy meeting, and Wall Street is betting it will hold steady its benchmark interest rate. Japan’s central bank will wrap up its first monetary policy meeting on Friday.
In other dealings early Wednesday, U.S. benchmark crude oil lost 56 cents to $59.80 per barrel. Brent crude, the international standard, shed 70 cents to $64.22 per barrel.
The U.S. dollar dropped to 158.08 Japanese yen from 158.16 yen. The euro was nearly unchanged at $1.1719.
___
AP Business Writer Damian J. Troise contributed.
Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
