The Japan Times - Trump Davos address lifts S&P 500 to record, dents oil prices

In a much-anticipated video appearance at the World Economic Forum in Davos, Trump pushed for lower interest rates and said he would cut taxes for companies investing in the United States while hiking tariffs on those who don't.

Trump also called for Saudi Arabia and OPEC to reduce oil prices, jolting crude prices lower.

After opening in negative territory as US Treasury yields climbed, the broad-based S&P 500 finished up 0.5 percent at 6,118.71, a new record.

Investors cheered Trump's message on tax cuts, which the billionaire US leader held out as a "carrot" to attract investment as compared with the "stick" of tariffs, said Jack Ablin of Cresset Capital.

"Certainly everyone understands the tariff message and now we're hearing more about the tax incentives," said Ablin.

Ablin noted that Trump has not advanced a campaign proposal to hike tariffs on Chinese goods by 60 percent, evidence of some "moderation" in the returning president's tone.

Investors have largely welcomed the first few days of Trump 2.0. However, warnings that China, the European Union, Canada and Mexico could be hit by tariffs as soon as February 1 have given cause for concern.

"Investors are still weighing Trump's tariff talk, though history suggests his bark often echoes louder than his bite," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

Earlier, trading in Asia got a lift from Wednesday's Wall Street rally that saw tech titans including Nvidia, Microsoft and Arm surge after Trump announced a new $500 billion venture to build infrastructure for artificial intelligence in the United States.

Tokyo-listed SoftBank, named in the venture, extended the rally Thursday, piling on more than five percent and boosting Tokyo's gains.

Elsewhere, Chinese authorities unveiled measures to bolster the country's stock markets, including allowing pension funds to invest in listed companies and pushing firms to increase share purchases.

The moves provided some support with Shanghai's stock market advancing, but Hong Kong gave up early gains to end lower.

"Recent history would suggest Beijing will need to take more radical action if Chinese shares are to enjoy a sustained recovery," said AJ Bell investment director Russ Mould.

The yen edged up against the dollar ahead of the Bank of Japan's policy decision Friday, when many investors expect it to raise interest rates for the third time since March.

"Economic data continues to support the BoJ's case for a rate hike," said Gregor Hirt at Allianz Global Investors, pointing to upward momentum in core consumer prices.

In European equity trading, Frankfurt set a new record high and London set another closing record. Paris also rose.

- Key figures around 2200 GMT -

New York - Dow: UP 0.9 percent at 44,565.07 (close)

New York - S&P 500: UP 0.5 percent at 6,118.71 (close)

New York - Nasdaq Composite: UP 0.2 percent at 20,053.68 (close)

London - FTSE 100: UP 0.2 percent at 8,565.20 (close)

Paris - CAC 40: UP 0.7 percent at 7,892.61 (close)

Frankfurt - DAX: UP 0.7 percent at 21,411.53 (close)

Tokyo - Nikkei 225: UP 0.8 percent at 39,958.87 (close)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 19,700.56 (close)

Shanghai - Composite: UP 0.5 percent at 3,230.16 (close)

Euro/dollar: UP at $1.0415 from $1.0409 on Wednesday

Pound/dollar: UP at $1.2352 from $1.2316

Dollar/yen: DOWN at 156.03 yen from 156.53 yen

Euro/pound: DOWN at 84.31 pence from 84.51 pence

West Texas Intermediate: DOWN 1.1 percent at $74.62 per barrel

Brent North Sea Crude: DOWN 0.9 percent at $78.29 per barrel

burs-jmb/acb

K.Inoue--JT