Asian markets track Wall St and Europe rally after Trump-Xi talks

HONG KONG: Most Asian markets rose Monday following a rally on Wall Street and a record-breaking day in Europe, with sentiment boosted by positive talks between Donald Trump and Chinese President Xi Jinping that soothed worries about the incoming US leader’s second term.

A sense of caution has permeated trading floors ahead of the tycoon’s inauguration later in the day after he warned he would impose hefty tariffs on imports, fanning fears of another debilitating trade war between the economic superpowers.

Pledges to slash taxes, regulations and immigration have also led to concerns that inflation could be reignited and force the Federal Reserve to hold off cutting interest rates further, with some observers even flagging possible hikes. Still, while dealers nervously eye the next four years, there was some relief after news of the phone call on Friday.

Trump and Xi vowed to improve ties between Washington and Beijing, with the Chinese leader hoping for a “good start” to relations and the president-elect saying “it is my expectation that we will solve many problems together”. On his Truth Social media platform, Trump added: “We discussed balancing Trade, Fentanyl, TikTok, and many other subjects.”