Asia-Pacific markets traded lower on Tuesday as investors assessed United States tariff threats linked to Greenland, which have heightened concerns about a widening rift between Washington and European capitals.
European countries are reportedly discussing counter-tariffs and broader economic measures in response to President Donald Trump’s latest threats, further straining transatlantic relations over the disputed Arctic territory.
By 11:40 am AEDT (12:40 am GMT), Australia’s S&P/ASX 200 was down 0.5%, Japan’s Nikkei 225 had fallen 1%, and South Korea’s KOSPI 200 was 0.6% lower.
In economic data, South Korea’s producer prices rose for a fourth straight month in December, underpinned by higher agricultural prices and a weaker local currency, according to central bank figures released on Tuesday.
The producer price index increased 0.4% from November to 121.76, accelerating from a 0.3% monthly rise, preliminary data from the Bank of Korea showed.
Meanwhile, U.S. markets remained closed on Monday for a public holiday, limiting directional cues for Asian investors.
In commodities, Brent crude eased 0.3% on Monday to settle at US$63.94 a barrel, while spot gold jumped 1.6% to a fresh record high of US$4,670.30 an ounce as demand for safe-haven assets strengthened.
Chinese equities posted modest gains, with the Shanghai Composite rising 0.3% to 4,114.0 and the CSI 300 edging up 0.1% to 4,734.5.
In contrast, Hong Kong’s Hang Seng Index fell 1.1% to 26,563.9, while India’s BSE Sensex ended 0.4% lower at 83,246.2.
European markets closed weaker on Monday, with the UK’s FTSE 100 down 0.4% to 10,195.4, Germany’s DAX falling 1.3% to 24,959.1, and France’s CAC 40 dropping 1.8% to 8,112.0.
