Asian Markets 2026: Nikkei Rallies Despite Trump’s 25% Iran Tariff Threat
On Jan 14, 2026, Asian markets responded to Trump's new 25% tariff threat on Iran-linked trade. Nikkei 225 rose 1.5% while KOSPI gained 0.7% amid US inflation concerns.
Are you ready for the next trade war? Donald Trump has just dropped a bombshell, announcing a 25% tax on imports from any country doing business with Iran. This protectionist move comes as the death toll from Iranian protests climbs, shaking global markets on January 14, 2026.
Nikkei Surges on Asian Markets Trump Iran Tariff 2026 News
Despite the brewing uncertainty, Japan's Nikkei 225 jumped 1.5% to reach 54,341.23. Investors are betting on Prime Minister Sanae Takaichi calling a general election soon. Meanwhile, South Korea's KOSPI edged up 0.7% to 4,723.10, bolstered by a commitment between Takaichi and President Lee Jae Myung to cooperate on economic security.
- China's trade surplus hit a record $1.2 trillion in 2025 despite existing tariffs.
- Hong Kong’s Hang Seng added 0.4% to 26,959.98.
- The Australian S&P/ASX 200 gained 0.1%.
US Inflation and Fed Rate Expectations
In the U.S., inflation data for last month showed prices rose 2.7% year-over-year. While slightly higher than the Federal Reserve's target, it hasn't deterred hopes for rate cuts. Treasury yields eased as the market expects at least two cuts in 2026. However, corporate earnings remain a concern; JPMorgan Chase shares fell 4.2% after missing profit estimates.
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