CANBERA (dpa-AFX) - Asian stocks ended mostly lower on Tuesday as U.S. President Donald Trump's tariff threats regarding Greenland reignited concerns about a trade war with the EU and NATO allies.
Trump tied Greenland sovereignty efforts to Nobel Peace Prize snub and claimed that America must have 'Complete and Total Control of Greenland.'
The dollar extended losses and gold hit a new high above $4.700 an ounce as Trump's tariff threats left investors worried about exposure to U.S. assets. Oil prices traded lower in Asian trade on oversupply worries.
China's Shanghai Composite index finished marginally lower at 4,113.65 as the People's Bank of China left its benchmark loan prime rate unchanged as expected, despite signs of cooling growth and a prolonged debt crisis in the real estate sector.
Hong Kong's Hang Seng index dipped 0.29 percent to 26,487.51, extending losses for a fourth straight session amid the threat of renewed tariff tensions.
Japanese markets fell sharply after Prime Minister Sanae Takaichi announced a snap general election for February 8, 2026.
Higher bond yields triggered selling, with the yield on 40-year bond hitting 4 percent for the first time since 2007 after Takaichi said she will accelerate discussions on reducing the consumption tax on food items for two years.
The Nikkei average fell 1.11 percent to 52,991.10, extending losses for a fourth straight session on growing fiscal concerns and Trump's renewed tariff threats against European allies over Greenland. The broader Topix index settled 0.84 percent lower at 3,625.60.
Seoul stocks ended lower to snap a 12-day winning streak as traders watched for the European Union's response to potential U.S. tariffs.
The Kospi average dropped 0.39 percent to 4,885.75, with chipmakers and automakers leading losses due to profit taking.
Australian markets fell for a second day, dragged down by banks and miners. The benchmark S&P/ASX 200 ended down 0.66 percent at 8,815.90 while the broader All Ordinaries index closed down 0.61 percent at 9,138.60.
BHP Group shares fell 1 percent after the miner conceded its stand-off with China's dominant iron ore buyer is taking a toll on prices.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally lower at 13,573.93.
U.S. stock markets were closed on Monday in observance of the Martin Luther King Jr. Day holiday.
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