The day arrived. The long-awaited inauguration of Donald Trump as US president was held yesterday in Washington, but the impact on equity markets has not been as expected. At least in China, where the stock markets have not reacted with declines as had been speculated on numerous occasions since the American tycoon won the 2024 presidential elections. Above all, in the heat of the aggressive electoral campaign that he carried out and given the threats of tariffs on products from the Eastern giant.
The reaction of the country’s stock markets, in fact, has been mixed, but it has served to make the Hang Seng of Hong Kong has already managed to trade positively in the annual balance for the year 2025. He The fact that Donald Trump, for now, has chosen not to announce new taxes in China as he has said he planned to impose on Canadian and Mexican imports by February 1, has served to certify the “V” recovery of the Chinese stock market.
And, since last the 13th it marked its annual minimum (almost 6% below the levels at which the year began) the selective has appreciated more than 7%, thanks in part to a dollar that has slowed down in its advance against its most traded crosses, including the yuan.
In the equity market of emerging countries, a kind of waiting period has been established until the US trade policy can be seen more clearly, warns Nenad Dinic, Equity Strategy Research, at Julius Baer. “Although there are signs of special pessimism and possible moderation in trade relations between the US and China, there could be upside surprises for the emerging market asset class,” highlights.
“Clearly, this is not the worst scenario in terms of trade,” added Cristóbal Dembik, senior investment advisor at Pictet Asset Management in statements to Bloomberg. “Trump’s focus is on Canada and Mexico,” but not on Europe or China at this timehe pointed out although he recalled that “the market knows that, sooner or later, Trump will come for it.”
The Shanghai Shenzhen CSI 300 Index, for its part, is still trading slightly below the levels it did when the year began.
Yuan rebound
He braking of the dollar against the most traded currencies on the planet in recent hours, has also been taken advantage of by the Chinese yuan. The Eastern currency manages to put the annual balance against the dollar also positive so far in 2025 by revaluating about 0.7% from the month’s lows.
Compared to the rest of the planet’s currencies, the yuan has also managed to show strength in recent sessions. IN fact, since the beginning of the year, the Chinese currency has appreciated against its most traded crosses on the planet except against the Japanese yen and the Australian and New Zealand dollars.
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