WASHINGTON: Asian stock markets were trading in negative zone as the dollar weakened against major currencies after Trump’s temporary order halting immigration from seven Muslim-majority countries weighed on shares of major Japanese exporters. Trump’s new order bans citizens of seven countries from entering into the US for the next 90 days, and suspends the admission of all refugees for 120 days, which has sparked concerns of geopolitical and international trade risks in the US. Today, markets in China, South Korea, Hong Kong, Taiwan and Singapore are closed for Lunar New Year. Disappointing retail sales data from Japan added to the downbeat tone around the Japanese stocks. Nikkei 225 slipped 0.57%. Toshiba stocks dropped 4.5% after the Asahi Shimbun reported that several trust banks will sue Toshiba after its share price dropped due to the accounting scandal.
The dollar slipped on Monday as disappointing US GDP numbers has reinforced the perception that Federal Reserve may not adopt an aggressive stance on the process of policy normalisation. In this regard, Q4 GDP increased at a 1.9% (QoQ), much lower than the growth of 3.5% during the prior quarter. Growth was dragged down by 4.3% decline in exports. Gold prices ended moderately lower, as geopolitical tensions moderated to an extent after US and Mexican President had a telephonic conversation and concurred that negotiations over key outstanding issues will continue. Jakarta Composite, SET Composite and Taiwan Weighted are trading marginally up. SGX Nifty and Nikkei 225 are trading in green.
