By Tom Westbrook

SINGAPORE (Reuters) – The dollar was strong and Asian stock markets were mostly positive on Monday as investors awaited policy announcements in the first hours of Donald Trump’s second term in office and watched Japanese prices rise over the weekend. .

Trump took the oath of office at noon Eastern Time (1700 GMT), and promised a “new day of American strength” during a ceremony on Sunday.

He has been hoping to issue several orders at the same time and, keeping in mind the uncertainty, he launched a digital token on Friday, which went up to sell more than $ 70 at one time for a total market value north of $ 15 billion.

Monday is a US holiday, so the first responses to its implementation in traditional financial markets can be heard in foreign currencies, where traders are looking at Trump’s tax policies, and then in Asian trade on Tuesday.

U.S. financial futures were slightly lower in early morning Asia on Monday as the dollar, which has been strong since September on the U.S. dollar and as Trump’s political campaign gained momentum, steadied.

rose 1%. ()

Last week saw the biggest weekly gain since early November and the Nasdaq’s biggest since early December on other bearish stocks.

The dollar is up about 14% against the euro since September and at $1.0273 is not far from last week’s two-year high. But they are so valuable that some analysts believe that a slow start to US inflation could attract some sellers.

“A strong start to Trump’s new term could unsettle nerves and give the dollar some support,” said Corpay economist Peter Dragicevich.

“Contrary to this, based on what already appears to be burning, we think that a more gradual approach will reduce the fear and see the dollar disappear, as it did when Trump took office in 2017.”

Trump has threatened tariffs of up to 10% on global trade and 60% on Chinese imports, along with 25% tariffs on Canadian and Mexican goods, measures that trade experts say could improve trade, raise costs and retaliate.

The Canadian dollar touched a five-year low of C$1.4486 per dollar on Monday. The Mexican peso fell 2-1/2 years to 20.94 per dollar on Friday. (FRX/)

it dipped early in the Asian day but remained above $100,000. Benchmark 10-year Treasury yields closed Friday at 4.61%, up nearly 100 basis points in four months. (US/)

CHINA FOCUS

China is looking more and more like a target for the toughest possible interest rate hike. Investors recently cheered a better-than-expected China outlook and Friday’s phone call between Trump and Chinese President Xi Jinping left some cheering.

“Basically everyone is waiting for these trade talks to start and see how Xi Jinping takes on Trump,” Ken Peng, head of Asia investment strategy at Citi Wealth told reporters in Singapore at a briefing.

“That relationship between the two fathers has been very important as a guiding principle of policy.”

Chinese markets rallied last week and futures showed a slight gain for Hong Kong shares on the open.

The yuan appears to be sensitive to any changes in trade policy and was slightly firmer at 7.3355 per dollar in offshore trade.

The Australian dollar, which is affected by trade and the economy of China, has lost its five-year low and, according to the analyst of the Commonwealth Bank, Joe Capurso, may try to resist at $ 0.6322 if the change in Trump’s policy does not meet the expectations of the market. it was last at $0.62.

The Japanese yen rallied last week as comments from Bank of Japan policymakers were taken as a sign that interest rate cuts are due on Friday.

It was stable at 156.17 per dollar and the stock market rose about 80% with a chance of 25 basis points.

In terms of commodities, gold rose to $2,694 per ounce and futures rose to $81.21 a barrel.