Asian Markets Wobble Amid Gold Surge as Trump Tariff Concerns Echo

Asian markets mostly fell on Wednesday as gold prices hit new highs, driven by concerns about US President Trump's potential tariffs on Greenland. US futures bounced after Wall Street's decline. Investors await Trump's speech in Davos, while geopolitical tensions and local issues affect Japanese markets.

Asian markets faced declines on Wednesday, with most shares dropping in response to uncertainty surrounding US President Donald Trump's tariff threats on Greenland. Concurrently, gold prices hit a record high, reflecting investor anxiety.

Despite the turbulence, US futures showed signs of recovery, rebounding after steep losses on Wall Street. Highlighting the sense of unease, investors turned to traditionally safer assets like gold, which crossed the USD 4,800 mark for the first time. Meanwhile, traders are awaiting Trump's address at the World Economic Forum in Davos, where he plans to showcase his administration's accomplishments.

Japan's market reaction was partly influenced by Prime Minister Sanae Takaichi's announcement of a snap election, igniting both geopolitical concerns and domestic fiscal policy uncertainties. Amid these challenges, Japan's government bond yields hit record levels, raising questions about future economic strategies.