Asia report: Markets mixed on Greenland tensions, China data
By Josh White
Date: Monday 19 Jan 2026
(Sharecast News) - Asia-Pacific markets mostly slipped on Monday as investors weighed escalating geopolitical tensions linked to Greenland against a heavy slate of economic data from China, while rising Japanese bond yields added to caution across the region.
Sentiment was dented after US president Donald Trump threatened tariffs on eight European countries and demanded control of Greenland, part of Denmark, prompting European leaders to condemn the comments as "completely wrong" and "unacceptable".
As Patrick Munnelly, market strategy partner at TickMill, noted, "fresh Trump tariffs dominate headlines with his threat to impose 10% tariffs on European countries starting 1 February - rising to 25% in June - due to their opposition to his attempt to negotiate a deal for the US to purchase Greenland from Denmark."
Tokyo weakens as JGB yields rise
Japanese equities weakened, with the Nikkei 225 falling 0.65% to 53,583.57 and the Topix edging 0.06% lower to 3,656.40.
Sumitomo Dainippon Pharma slumped 13.16%, while Toyota Tsusho fell 4.07% and Yokohama Rubber dropped 4.03%.
Bond markets were also in focus after the benchmark 10-year Japanese government bond yield climbed to 2.279%, its highest level since 1999, while yields on 20- and 30-year JGBs hit record highs.
Munnelly said that "the most significant movement in financial markets overnight comes from long-end JGBs, with yields climbing approximately 12 basis points on the 30-year bond, now exceeding 3.60%," adding that political uncertainty was also in play, with prime minister Sanae Takaichi "expected to announce a snap election officially today."
Economic data showed core machinery orders plunged 11% month on month in November to JPY 883.9bn, far worse than expectations for a 5.1% fall and the steepest decline since April 2020.
Manufacturing orders slid 10.8% to JPY 398.2bn and non-manufacturing orders dropped 10.7% to JPY 492.9bn, with sharp contractions across sectors including non-ferrous metals, iron and steel, textiles, finance and mining.
On a year-on-year basis, private-sector orders fell 6.4%, reversing October's 12.5% rise and missing forecasts for a 4.9% increase.
Mainland markets modestly higher after Chinese economic data dump
Chinese markets were modestly higher after the release of fourth-quarter and full-year economic data.
The Shanghai Composite rose 0.29% to 4,114.00, with Zhejiang Aokang Shoes up 10.06%, Shanghai Baosteel Packaging gaining 10.04% and Shanghai Guangdian Electric Group advancing 10.04%, while the Shenzhen Component added 0.09% to 14,294.05.
Official figures showed China's economy expanded 5% in 2025, in line with forecasts, as exports offset weak domestic demand, though growth slowed to 4.5% in the fourth quarter from 4.8% in the third.
Fixed asset investment fell a worse-than-expected 3.8%, retail sales rose 0.9% year on year in December and 3.7% for the full year, while the property downturn deepened, with investment plunging 17.2% and new construction starts down 20.4%.
Munnelly said that "China's 2025 GDP growth has been confirmed at 5%," but cautioned that the broader global response to renewed trade tensions remained restrained, with market moves appearing "relatively muted in early trading."
Hong Kong shares underperformed, with the Hang Seng Index sliding 1.05% to 26,563.90.
Biotech stocks led losses, as Sino Biopharmaceutical dropped 6.19%, WuXi Biologics fell 4.83% and Innovent Biologics declined 4.64%.
Seoul shares rise, Australasia in the red
South Korean equities bucked the regional trend, with the Kospi 100 climbing 1.38% to 5,476.95.
Doosan Robotics surged 19.14%, Hyundai Motor jumped 16.22% and Kia Corporation gained 13.18%.
In Australia, the S&P/ASX 200 fell 0.33% to 8,874.50, dragged lower by A2 Milk Company, which slid 11.7%, Life360, down 7.49%, and Pro Medicus, off 6.8%.
New Zealand markets also retreated, with the S&P/NZX 50 down 1% at 13,580.29, as A2 Milk Company dropped 11.15%, Fletcher Building slipped 2.31% and Oceania Healthcare fell 2.27%.
Dollar weakens against regional peers, oil prices down
In currency markets, the dollar edged 0.04% lower against the yen to JPY 158.05, while it weakened 0.28% versus the Australian dollar to AUD 1.4921 and fell 0.53% against the New Zealand dollar to NZD 1.7293.
Munnelly observed that the "direction of market movements - weakening dollar and equities, strengthening precious metals - is consistent with past examples, but the scale of the reaction appears modest," suggesting this could reflect thin liquidity due to the Martin Luther King Jr Day holiday in the US or investor scepticism that Trump's threats would ultimately be followed through, a pattern he described as "another instance of 'TACO' - Trump Always Chickens Out."
Oil prices were lower, with Brent crude futures last down 0.81% on ICE at $63.61 per barrel, and the NYMEX quote for West Texas Intermediate falling 0.71% to $59.02.
Reporting by Josh White for Sharecast.com.
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