San Francisco Frontiers - Stock markets rise, bitcoin hits high as Trump returns

The dollar traded mixed against main rivals, while oil prices slipped.

Bitcoin hit a record above $109,000 as Trump, who has signalled plans to deregulate the cryptocurrency sector, prepares to be sworn in as US president.

Over the weekend, Trump launched his own cryptocurrency, a so-called meme coin appropriately called $TRUMP, sparking feverish buying that sent its market capitalisation soaring to several billion dollars.

"Markets are beating to the drum of Donald Trump on the day of his return to the White House," noted Russ Mould, investment director at AJ Bell.

London's benchmark FTSE 100 index and Frankfurt's DAX traded close to record highs approaching the half-way stage.

Wall Street shuts Monday for the Martin Luther King holiday.

Ahead of the inauguration, sentiment has been boosted by positive talks between Trump and Chinese President Xi Jinping that soothed worries about the incoming US leader's second term.

Trump still plans, however, to impose hefty tariffs on imports, fanning fears of another debilitating trade war between the US and China, the world's second-largest economy.

Pledges to slash taxes, regulations and immigration have also led to concerns that inflation could be reignited and force the Federal Reserve to hold off cutting interest rates further, with some observers even flagging possible hikes.

"The start of a new presidency often brings fresh energy -- and uncertainty -- to the financial markets," said Saxo Markets chief investment strategist Charu Chanana.

"With Donald Trump's inauguration, investors are bracing for significant policy shifts. This could mean changes in taxes, spending, and trade agreements."

Hong Kong's stock market led gains in Asia amid hopes that the feared trade war can be averted.

Seoul slipped after the Bank of Korea cut its 2025 economic growth forecast owing to weakening sentiment and political risks following last month's brief declaration of martial law by President Yoon Suk Yeol and the political crisis it has sparked.

There was little relief from news that the South Korean central bank had unveiled a $250 billion support package for its exporters, citing the risk of possible tariffs by Trump.

- Key figures around 1100 GMT -

London - FTSE 100: UP 0.2 percent at 8,520.71 points

Paris - CAC 40: UP 0.1 percent at 7,719.98

Frankfurt - DAX: FLAT at 20,910.09

Tokyo - Nikkei 225: UP 1.2 percent at 38,902.50 (close)

Hong Kong - Hang Seng Index: UP 1.8 percent at 19,925.81 (close)

Shanghai - Composite: UP 0.1 percent at 3,244.38 (close)

New York - Dow: UP 0.8 percent at 43,487.83 (close)

Euro/dollar: UP at $1.0318 from $1.0272 on Friday

Pound/dollar: UP at $1.2195 from $1.2168

Dollar/yen: UP at 156.42 yen from 156.20 yen

Euro/pound: UP at 84.59 pence from 84.41 pence

West Texas Intermediate: DOWN 0.4 percent at $77.58 per barrel

Brent North Sea Crude: DOWN 0.5 percent at $80.37 per barrel

G.Miller--SFF