2026-01-15 04:37:00
At a glance:
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Trump orders critical-minerals talks, invokes Section 232; silver drops sharply from record highs.
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White House imposes 25% tariff on select advanced AI chips, citing national security.
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U.S.–Japan talks flag excessive FX volatility; USD/JPY steadies near 158.60.
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Geopolitics in focus as U.S. seeks UN briefing on Iran, Trump signals preference for swift action.
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Asia policy mix steady: Japan PPI elevated, BOK holds rates, PBoC sets strongest CNY fix since 2023.
President Donald Trump ordered the Commerce Department and the Office of the United States Trade Representative to negotiate agreements aimed at cutting U.S. reliance on imported processed critical minerals, citing national security risks. He invoked Section 232 authority to monitor and adjust imports if necessary, following a meeting earlier this week led by Scott Bessent, where critical mineral supply security was flagged as a priority. The orders were cited by traders as a contributor to the sharp fall in silver prices from record highs.
Trump also signed a proclamation targeting semiconductor imports on national security grounds, imposing a 25% tariff on a narrow set of advanced computing chips. The White House specifically named products such as Nvidia’s H200 and Advanced Micro Devices’s MI325X.
Separately, the U.S. Treasury said Bessent raised concerns about “excessive” exchange-rate volatility in a meeting with his Japanese counterpart, stressing that large, disorderly currency moves are undesirable and can undermine economic and financial stability. Treasury added that Bessent emphasised the need for sound monetary policy formulation and clear communication to anchor expectations and limit destabilising FX swings.
The USD/JPY response was muted following Wednesday’s sharp decline, with the pair trading slightly firmer on the session to near 158.60 highs. In Japan, December wholesale inflation, the Producer Price Index, also known as the Corporate Goods Price Index, came in line with expectations but remained elevated at 2.4% y/y.
Geopolitics also remained in focus after NBC News reported Trump wants any renewed U.S. military action against Iran to be “swift and decisive,” though advisers warned a rapid collapse of the Iranian government cannot be guaranteed. Separately, the United Nations Security Council is set to meet Thursday for a U.S.-requested briefing on the situation in Iran.
In Asia, the Bank of Korea held its benchmark rate steady as expected, while monitoring won weakness and risks tied to property-market imbalances. China’s People’s Bank of China set the daily yuan fixing at its strongest level (for CNY) since May 18, 2023.
In corporate news, Toyota Motor sweetened its bid for Toyota Industries by 15% to ¥18,800 per share, sending Toyota Industries shares to a record high.
Asia-Pac
stocks:
- Japan
(Nikkei 225) -0.88% - Hong
Kong (Hang Seng) -0.55% - Shanghai
Composite -0.6% - Australia
(S&P/ASX 200) +0.43%
