By SUNTV Global Channel | January 12, 2026
Asian stock markets climbed on Monday while the US dollar weakened as investors digested news that the US Justice Department has subpoenaed the Federal Reserve, raising concerns about the central bank’s independence and spotlighting mounting political pressure in the United States.
The subpoena, confirmed by Federal Reserve Chair Jerome Powell, is tied to his Senate testimony and has been publicly criticised as part of former President Donald Trump’s campaign to influence monetary policy. Powell described the threat of criminal charges as a consequence of the Fed’s commitment to setting interest rates based on its economic mandate, rather than political preference.
The development comes alongside a weaker-than-expected US jobs report, which showed only 50,000 new positions were added in December and the unemployment rate fell to 4.4 per cent, underscoring uncertainty about the strength of the labour market.
As a result of the political and economic cues, the dollar fell about 0.2 per cent against major currencies, while gold prices jumped as much as 1.5 per cent, reflecting a typical flight to safe-haven assets amid uncertainty.
Markets in Hong Kong, Shanghai, Seoul and Taipei showed early gains, tracking a strong finish on Wall Street last week. Other Asian bourses, including those in Bangkok, Manila, Singapore, Kuala Lumpur and Jakarta, also advanced.
Most global stock markets have posted positive starts to 2026, with key indices in Frankfurt, London, Paris and Seoul recently hitting record highs driven by optimism in the tech and defence sectors.
In energy markets, oil prices saw a modest dip after a recent rally, while geopolitical tensions—including protests in Iran and the US seizure of Venezuelan crude supplies—continued to underpin risk perceptions.
The market reaction underscores growing sensitivity to US political and economic developments, with investors watching closely how central bank independence and future monetary policy might evolve against a backdrop of economic data and political pressure.
— SUNTV Global Channel
