Global markets on Friday were influenced by a mix of geopolitical developments and corporate news, with a particular focus on the trade and foreign policy actions of the U.S. administration under President Donald Trump. Asian equities advanced, buoyed by renewed optimism in artificial intelligence following strong earnings from chipmaker TSMC. The MSCI Asia-Pacific ex-Japan index rose 0.68%, nearing a record high.
In a significant move, President Trump threatened to impose tariffs on countries that refuse to support his bid for the United States to acquire Greenland. He framed the mineral-rich, NATO-protected Danish territory as a national security imperative against Russian and Chinese influence. Despite categorical rejections from the governments of Denmark and Greenland, and polls showing over 80% of Americans oppose annexation, Trump's special envoy, Jeff Landry, insisted a deal "should and will be made," with a visit planned for March.
Concurrently, Trump's administration solidified its stance in Venezuela, decisively backing Acting President Delcy Rodríguez over opposition leader María Corina Machado. This shift prioritizes geopolitical stability and energy access, following Rodríguez's release of five American prisoners and pledges of oil cooperation. In a symbolic gesture, Machado had presented Trump with her 2025 Nobel Peace Prize medal at the White House earlier in the week.
Elsewhere, Canada's Prime Minister Mark Carney secured a historic trade reset with China, negotiating tariff relief worth an estimated $3 billion. The deal includes China slashing canola seed duties from 85% to 15% by March and removing levies on other Canadian exports, while Canada will permit 49,000 Chinese electric vehicles annually. Chinese President Xi Jinping hailed the agreement as a "turning point."
In corporate news, Japanese conglomerate Mitsubishi Corp. agreed to acquire Aethon Energy's U.S. natural gas assets for $5.2 billion ($7.5 billion including debt), its largest-ever U.S. shale purchase, citing growing power demand from AI and data centers.
