“The global reaction [to Trump’s travel ban] has been one of universal condemnation,” said Stephen Innes, a currency senior trader at Oanda Asia Pacific.
“The fear here is that the market may start to think that personal vendetta is clouding the Oval Office judgment and they could express a huge vote of non-confidence through the markets,” he said.
“The increase in civil unrest alone should be a concern for investors, and with a lack of clarity on the economic policy front, markets will be cantankerous early in the week as they’re completely uncertain of what’s next from President Trump on the geopolitical landscape,” he added.
Also unsettling the market was the gross domestic product (GDP) data, which showed US economic growth slowed more than expected to 1.9 per cent in the October-to-December period, down from 3.5 per cent in the third quarter.
Nonetheless, Innes said the dollar should regain solid ground quickly, as Trump’s immigration stance is “not economically disruptive to the scale where it will dampen Wall Street’s current momentum”.
Financial markets in Hong Kong, mainland China, Singapore, and Malaysia were closed Monday for the Lunar New Year holidays.
Hong Kong markets will resume trading on Tuesday, while mainland markets will open on Friday.
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