Stocks track Wall St rally as Trump cools tariff threats in Davos

January 22, 2026 / 10:21 AM

Sharjah24 - AFP: Asian stocks advanced on Thursday, tracking a strong rally on Wall Street after US President Donald Trump eased concerns over potential tariffs during the World Economic Forum in Davos, helping calm fears of a widening trade conflict. Safe-haven precious metals extended losses as investor sentiment improved.

Tariff fears ease after Davos remarks

Markets had been volatile earlier in the week following Trump’s warning that several European countries, including Germany, France, Britain and Denmark, could face tariffs over their opposition to US ambitions regarding Greenland. Those remarks had raised the prospect of retaliation from Europe and fuelled worries about a new trade war. Sentiment improved after Trump signalled he would not pursue the issue by force and confirmed that planned tariffs would not be implemented in early February.

Wall Street rally lifts Asian markets

US equities rose more than one percent, reversing earlier losses, and Asian markets followed suit. Gains were seen across Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei and Manila, with technology-heavy indices leading the advance.

AI optimism boosts tech stocks

Investor confidence was further strengthened by comments from Nvidia chief executive Jensen Huang, who highlighted the massive investment needed to support the expansion of generative artificial intelligence. Major chipmakers and technology firms across Asia posted strong gains, including Samsung, SK hynix, SoftBank and TSMC.

Safe havens retreat as risk appetite returns

Gold and silver continued to fall after recent record highs, reflecting improved risk appetite. Oil prices edged higher, while currency markets showed limited movement.