Markets from Japan to New York were sent tumbling Monday after news at the weekend that Trump had signed off 25% duties against Mexico and Canada, fanning concerns for the stuttering global economy.

Tokyo, Seoul and Jakarta each shed more than two percent while Sydney, Bangkok and Wellington were each off more than one percent. Singapore and India also fell, while Hong Kong gave up early deep losses to end only marginally down. Shanghai remained closed for a holiday.

London's benchmark FTSE 100 hit fresh highs Friday, helped by an 11-percent jump in the share price of Smiths Group after the British engineering company said it planned to simplify the business and return substantial sums to shareholders.

In a much-anticipated speech via video link at the Davos World Forum in Switzerland, Trump pushed for lower interest rates and said he would cut taxes for companies investing in the United States while imposing tariffs on those who do not.

Shanghai was among the main winners, eating into year-to-date losses after China unveiled a fresh batch of measures aimed at boosting the country's stock markets as part of Beijing's moves to provide support to the stuttering economy.

Software investment giant SoftBank soared more than 10 percent -- leading Tokyo-listed chipmakers higher -- after the American president said it was included in a new $500-billion venture to build infrastructure for artificial intelligence in the United States.

The new US president's announcement that the country's closest neighbours could be hit with 25% levies as soon as Feb. 1 also jolted currency markets, with the Mexican peso and Canadian dollar tumbling.

A sense of caution has permeated trading floors ahead of the tycoon's inauguration later in the day after he warned he would impose hefty tariffs on imports, fanning fears of another debilitating trade war between the economic superpowers.

A report saying the incoming US leader's economics team was considering slowly hiking tariffs on imports provided support to traders and put a cap on the dollar's latest surge, while news of fresh curbs on AI chips to China appeared to have little immediate impact.

The equity sell-off tracked hefty losses on Wall Street, where all three main indexes finished more than one percent lower as the new trading year continued to falter.

Markets have started the year cautiously, with the optimism that characterised most of the past three months dented by concerns about Donald Trump's coming presidency and the US central bank's hawkish pivot on monetary policy.

A report saying the president-elect was considering declaring a national economic emergency to provide legal cover to impose tariffs on all imported goods added to the sense of uncertainty on trading floors.

With inflation worries already elevated owing to Donald Trump's pledges to slash taxes, regulations and immigration when he returns to the White House, the latest readings added to uncertainty on trading floors.

Eyes were also on the release of closely watched US jobs data at the end of the week after the Federal Reserve scaled back its interest rate cut expectations and took a more hawkish turn.

Concerns about China's stuttering economy, the outlook for US interest rates and the wars in Ukraine and the Middle East were also causing a sense of uncertainty.

Hong Kong, Sydney and Taipei climbed, while Seoul surged nearly two percent higher despite deepening political uncertainty in Asia's fourth-largest economy.

Equities mostly had a bumper 2024 on the back of enthusiasm about artificial intelligence (AI), cuts in borrowing costs by central banks, and Donald Trump's presidential election win.

Overnight, European stocks bounced around while US equities shook off early weakness to push higher as investors waited to see if a so-called Santa Claus rally would materialise.

A holiday-thinned week got off to a healthy start after last week's sell-off sparked by the US central bank's outlook that suggested officials will not lower borrowing costs as much as previously hoped over the next 12 months.

Data showing Japanese inflation rose more than expected last month did little to help the yen, which took a hefty hit from the US central bank's more hawkish tilt and the Bank of Japan's refusal to tighten monetary policy.

Asian markets sank Thursday and the dollar held gains following a severe sell-off on Wall Street that came after the Federal Reserve halved its rates outlook and boss Jerome Powell warned officials' focus was back on fighting inflation.

There were few catalysts to drive region-wide activity before the US central bank's interest rate decision, with Wall Street providing a negative lead as profit-takers moved in while economic data was mixed.

Investors are keeping tabs on Beijing after Chinese leaders' latest measures to kickstart the economy fell short of expectations, with weak retail sales data Monday reinforcing the need for more support.

According to a new survey, Americans' expectations for Donald Trump's second term are as follows: 60% of respondents favor increased military presence on the border, while 51% predict economic progress.

The tepid start came on the year's last full week of trading, with the focus on key monetary policy decisions by the US Federal Reserve and the Bank of Japan.

Hong Kong and Shanghai both tumbled as investors shrugged at Beijing's pledge to introduce measures aimed at "lifting consumption vigorously" as part of a drive to reignite growth in the world's number two economy.

Seoul's Kospi pushed higher for a third straight day, eating further into the losses sustained in a sell-off that came in the wake of South Korean President Yoon Suk Yeol's short-lived martial law declaration.

There is speculation that monetary policymakers will not make as many reductions next year as previously expected amid fears that Trump's planned tax cuts, deregulation and tariff hikes will reignite inflation.

The retreat came on a tough day for Asian markets despite another record on Wall Street, though Hong Kong bounced in the afternoon after China said it would adopt a looser approach to monetary policy.

Traders were looking for a little stability after the past few days that saw Seoul plunged into crisis, France's government fall and bitcoin surge to a historic high above $100,000.