HONG KONG, Jan 7, (V7N) – Asian markets climbed on Tuesday, buoyed by a tech-fueled rally on Wall Street, as traders monitored potential shifts in Donald Trump’s tariff policies following reports suggesting a narrower, more targeted approach to trade measures.

The upbeat mood in Asia was underpinned by a surge in tech stocks, with Taiwan-based chipmaker Foxconn’s strong performance sparking renewed interest in the semiconductor sector. The rally lifted the S&P 500 and Nasdaq, with Nvidia reaching a record high.

The Washington Post reported that Trump's team was considering limiting tariffs to critical sectors, easing fears of sweeping trade restrictions. However, Trump dismissed the report as "Fake News," reaffirming his commitment to tough trade policies.

Most Asian markets opened higher, with Tokyo gaining over 2%, and Shanghai, Sydney, Seoul, Singapore, and Taipei also posting gains. However, Hong Kong’s Hang Seng Index slipped, weighed down by a sharp decline in Tencent shares after its inclusion in a U.S. list of “Chinese military companies.” Tencent refuted the claim, calling it a “mistake,” while battery manufacturer CATL, also named on the list, fell 5.2% in Shenzhen.

Concerns linger about Trump’s economic strategies, including potential tax cuts, regulatory rollbacks, and tariff impositions, which analysts warn could exacerbate inflation. “Stronger demand running into a strained supply side of the U.S. economy could significantly push up goods and services inflation,” said David Rees of Schroders.

Investors are now looking ahead to Friday’s U.S. non-farm payroll report, which may offer insights into the Federal Reserve’s monetary policy trajectory after its recent hawkish shift.

Key Market Figures (0230 GMT):

Tokyo - Nikkei 225: UP 2.4% at 40,264.50

Hong Kong - Hang Seng: DOWN 0.2% at 19,642.30

Shanghai - Composite: UP 0.2% at 3,209.64

Euro/dollar: DOWN at $1.0382 from $1.0388

West Texas Intermediate: DOWN 0.3% at $73.35 per barrel

Brent North Sea Crude: DOWN 0.2% at $76.13 per barrel

END/BUS/RH/