Donald Trump’s immigration halt on Friday sent Asian markets and Wall Street stock futures broadly lower on Monday, as traders expressed concern about how Trump’s protectionist policies would impact the global economy. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.4 percent during Monday’s Asian session while Japan’s Nikkei lost 0.5 percent during the session as the yen continued to act as a safe-haven and to weigh on exporters. The dollar index was also weaker on Monday, trading at 110.34, a loss of 0.2 percent. Liquidity was lighter than usual on Monday with markets in China, Hong Kong and Singapore closed for Lunar New Year celebrations.
Data out on Friday did little to help the dollar, showing that U.S. economic growth slowed more than expected in the fourth quarter of 2016, with the gross domestic product failing to reach the 2.2 percent rise expected. The U.S.GDP grew at a 1.9 percent annualized pace in the fourth quarter, dramatically lower than the third quarter’s 3.5 percent growth.
Commodities markets also continued to struggle on Monday, extending last week’s slump with U.S. crude prices falling to $52.93 per barrel, a 0.45 percent decline on Monday that followed Friday’s 1.1 percent price drop. Brent crude prices also fell 0.45 percent on Monday, sliding down to $55.27 per barrel.
Gold remained a safe haven asset, though it also struggled to soar higher. Spot gold gained 0.1 percent on Monday, trading at $1,192.66 per ounce.