Asian shares finish strong following Trump’s retreat on Greenland tariff warning

Indices

Asian equity markets are displaying mixed yet predominantly positive momentum as of January 22, 2026. The Nikkei 225 (N225) advanced by 1.7% to close at 53.69K, underpinned by robust gains in technology stocks and signaling heightened investor risk appetite in Japan. The Hang Seng Index (HSI) saw a marginal gain, edging up by less than 0.1% to close at 26.6K, reflecting a more cautious tone, especially in technology and consumer sectors. The Shanghai Composite Index (SSEC) delivered a notable performance, climbing 1.5% to 4.08K, driven by confidence in China’s economic recovery and ongoing policy support for the property sector.

These movements suggest strong buy signals in Japanese and Chinese technology stocks, while the Hang Seng’s muted move points to a wait-and-see approach for Hong Kong equities.

Stocks

A dynamic rotation into technology leaders is evident in today’s trading. On the Nikkei 225, SoftBank Group (9984.T) soared 11.6%, and Disco Corp. (6146.T) rallied 17.1%, confirming robust investor conviction in the sector. Advantest Corp. (6857.T) also advanced by 5%, reinforcing the bullish backdrop.

In Hong Kong, Xiaomi Corp. (1810.HK) remained among the most traded, closing at 35.42, though it slipped 0.17%. This underperformance signals sector rotation or profit-taking in high-beta tech names.

On the Shanghai Composite, East Money Information (300059.SZ) jumped 5.7%, Leo Group (002131.SZ) rose 6.9%, and Giga Device Semiconductor (603986.SH) advanced 6.4%, highlighting investor enthusiasm for fintech and semiconductor themes in mainland China.

Economic News

Markets are responding positively to the U.S. administration’s recent decision to retract proposed tariffs on eight European countries regarding Greenland, with President Donald Trump also ruling out military intervention. This easing of geopolitical tensions has bolstered risk sentiment across Asia, supporting equity rallies and reducing perceived downside risks. Additionally, China’s targeted support for the property sector and broader economic recovery measures are directly fueling bullish sentiment in the Shanghai exchange, contributing to its outperformance.

Economic Events

There are no major economic calendar events or earnings releases impacting Asian markets today, according to the available data. However, anticipation remains high for further policy signals and macroeconomic data that could shape near-term risk appetite and capital flows across the region.

Market Sentiment

The prevailing market sentiment is cautiously optimistic, underpinned by receding geopolitical uncertainties and supportive economic indicators. The strong rally in the Nikkei 225 and Shanghai Composite reflects robust investor confidence, particularly in technology and recovery-linked sectors. Meanwhile, the more muted rise in the Hang Seng Index suggests a degree of wariness, possibly due to sector-specific risks or global macro headwinds. Overall, risk appetite is rebounding, but investors remain mindful of evolving global trade dynamics and potential macroeconomic shocks.

Recommendations

Given today’s market dynamics, traders are advised to capitalize on momentum in Japanese and Chinese technology stocks, with SoftBank Group, Disco Corp., East Money Information, and Giga Device Semiconductor presenting notable upside potential. Stop-losses should be set below recent support levels to guard against volatility stemming from external shocks. In Hong Kong, a neutral stance is recommended, with close monitoring of sector rotation and emerging trends in the technology and consumer space. A vigilant approach is warranted across all markets, particularly as investors digest upcoming economic data and policy signals.

Please note that the analysis is for informational purposes only and does not constitute financial advice. Users should conduct their own research.