Asian shares inched higher on Monday as investors weighed political and economic developments in the United States, while the dollar slipped amid concerns over the independence of the US Federal Reserve.HSI jumped 208 points or 0.79% to 26,439. Japan’s Nikkei also climbed 822 points or 1.6% to 51,939. Shenzhen and Shanghai also added 1.2% and 0.78% respectively. In South Korea, Kospi traded in green adding 29 points at 11:11 AM IST. Market sentiment was shaped by confirmation that the US Justice Department had issued a subpoena to the Federal Reserve, a move that raised alarm among investors. Federal Reserve Chair Jerome Powell acknowledged the action late on Sunday, calling it unprecedented and linking it to pressure from US President Donald Trump for further interest rate cuts, despite the Fed signalling that rates would remain unchanged. Powell said that the central bank received grand jury subpoenas on Friday related to his testimony before the Senate in June, which dealt with a major renovation project of Federal Reserve office buildings. The political tension followed the release of weaker-than-expected US labour data on Friday. The jobs report showed that only 50,000 new jobs were created in December, while the unemployment rate edged down to 4.4 percent. Financial markets reacted swiftly. The dollar slipped around 0.2% against major currencies, according to Bloomberg. Gold prices jumped 1.5% as investors sought safety amid rising uncertainty. Equity markets across Asia moved higher in early trading. Gains were seen in Hong Kong, Shanghai, Seoul and Taipei, mirroring Wall Street’s record close at the end of last week. Stocks also rose in Bangkok, Manila, Singapore, Kuala Lumpur and Jakarta. Global markets have largely begun the year on a strong footing. Stock indices in Frankfurt, London, Paris and Seoul touched record highs last week, driven mainly by optimism surrounding technology stocks and advances in defence sector shares. Oil prices dipped slightly on Monday but largely held on to last week’s rally. Ongoing protests in Iran continued to fuel geopolitical concerns, while the US seizure of Venezuela’s crude supplies added to worries about excess supply. President Trump has warned Iran of consequences if demonstrators were harmed, as Tehran cautioned against foreign interference. On Sunday evening, Trump said he was weighing potential military action following reports of a violent crackdown that resulted in the deaths of hundreds of people.
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