Stock market today: Asian shares trade mixed in a muted reaction to the U.S. inauguration

A monitor near a Japanese and the U.S. flags shows Donald Trump delivering a speech at the inauguration ceremony as President of the United States, Tuesday, Jan. 21, 2025, at a foreign exchange trading company in Tokyo. (AP Photo/Eugene Hoshiko)

TOKYO (AP) — Asian shares were mixed in mostly muted trading on Tuesday, despite anticipation for a market reaction to the inauguration of U.S. President Donald Trump.

Some analysts said the inauguration would inject optimism into global markets, while others said the threat of incoming tariffs would work as a dampener on Asian economies. U.S. markets were closed Monday for the Martin Luther King Jr. Day holiday.

Japan’s benchmark Nikkei 225 slipped 0.1% in morning trading to 38,951.77. Australia’s S&P/ASX 200 gained 0.5% to 8,392.80. South Korea’s Kospi lost 0.2% to 2,514.06.

A monitor near a Japanese and the U.S. flags shows Donald Trump delivering a speech at the inauguration ceremony as President of the United States, Tuesday, Jan. 21, 2025, at a foreign exchange trading company in Tokyo. (AP Photo/Eugene Hoshiko)

Worries about the effects of Trump’s policies on China have eased somewhat as both sides have pledged to work to improve relations. Trump did not immediately indicate drastic action on possible tariffs on Chinese exports to the U.S.

The Hang Seng index added 0.4% to 20,012.25, while the Shanghai Composite shed 0.3% to 3,233.85.

“In a twist that calmed nerves across global markets … President Trump revealed he would not, contrary to expectations, roll out new tariffs immediately,” said Stephen Innes, managing partner at SPI Asset Management.

In one sign of market optimism about possible executive moves aimed at stimulating the U.S. economy, U.S. stock market futures rose.