Asia-Pacific markets set to rebound after Trump climbs down from Europe tariff threats
Published Wed, Jan 21 2026
6:52 PM EST
Lim Hui Jie@in/hui-jie-lim-a7371176/WATCH LIVEKey Points
- Asia-Pacific markets are set to rebound after U.S. President Donald Trump walked back on his threats to impose tariffs on European countries over Greenland.
- Japan will release its December trade figures released, with economists polled by Reuters expecting a 6.1% year-on-year increase in exports.
A Greenlandic flag flies over a residential house on Jan. 21, 2026 in Nuuk, Greenland.
Sean Gallup | Getty Images
Asia-Pacific markets were set to rebound Thursday, tracking gains on Wall Street after U.S. President Donald Trump walked back on his threats to impose tariffs on European countries over Greenland.
Trump also said at the World Economic Forum in Davos that he would not use force to acquire the Arctic island, calming nerves over a possible U.S. military action.
The U.S. President also said he had "formed the framework of a future deal with respect to Greenland," along with NATO Secretary General Mark Rutte.
Asian markets are already showing signs of that rebound, with Australia's S&P/ASX 200 climbing 0.78% in early trade, having dropped about 0.4% in the previous session.
Futures for Japan's Nikkei 225 pointed to a stronger open for the market, with the contract in Chicago at 53,565 and its counterpart in Osaka at 53,510 compared to the previous close of 52,774.64.
Japan will see its December trade figures released today, with economists polled by Reuters expecting a 6.1% year-on-year increase in exports.
Hong Kong Hang Seng index futures were at 26,616, higher than the HSI's last close of 26,585.06.
Overnight in the U.S., the Dow Jones Industrial Average surged 1.21%, the S&P 500 gained 1.16%, while the Nasdaq Composite advanced 1.18%.
âCNBC's Sean Conlon, Pia Singh and Chloe Taylor contributed to this report.