International News 21 January 2026
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HSBC Sees Limited Ringgit Upside in 2026 Amid Trade Obligations and Capital Outflows
HSBC Global Investment Research expects the Malaysian ringgit’s appreciation in 2026 to be limited, citing portfolio outflows and obligations arising from the U.S.–Malaysia reciprocal trade agreement. Under the deal, Malaysia is required to boost imports from the United States and increase investment there, creating a “natural recycling” of capital inflows that will weigh on the currency, according to HSBC Asia FX Research Head Joey Chew. He also warned that concerns over Malaysia’s export competitiveness could further cap the ringgit’s gains. Despite these headwinds, HSBC noted that the ringgit may still find support from overseas income repatriation by government-linked companies (GLCs), aided by stable or moderately improving commodity prices. Chew added that while the U.S. dollar is expected to remain under pressure in 2026, its decline will likely be more gradual than last year. Overall, HSBC forecasts the ringgit to weaken to 4.10 per U.S. dollar by end-2026, from around 4.0562 currently.
https://internasional.kontan.co.id/news/nasib-ringgit-2026-hsbc-ramal-melemah-inve1stor-wajib-tahu
Japan Stocks Fall for Fifth Session as Global Risk Sentiment Weakens
Japanese stocks extended their losing streak for a fifth straight session on Wednesday (Jan. 21), tracking an overnight sell-off on Wall Street as President Donald Trump’s increasingly aggressive rhetoric over Greenland weighed on global risk appetite. The Nikkei 225 slid about 1% to around 52,450, while the broader Topix fell 1.3% to roughly 3,580, according to Trading Economics. Technology and financial stocks led the declines, with losses in Disco Corp (-1.4%), Advantest (-1.4%), SoftBank Group (-2.3%), Mitsubishi UFJ (-2.9%), and Sumitomo Mitsui (-2.8%). Domestically, Finance Minister Satsuki Katayama urged calm after Japanese government bond (JGB) yields jumped amid rising fiscal concerns linked to a proposal to cut the 8% sales tax on food. Investors are also bracing for a snap general election on Feb. 8, as Prime Minister Sanae Takaichi seeks to consolidate power and push a more expansionary fiscal agenda. Meanwhile, the Bank of Japan is widely expected to keep its monetary policy unchanged at its upcoming meeting this weekend.
U.S. Bank Stocks Slide as Trump’s Credit Card Rate Cap Deadline Looms
U.S. bank stocks fell sharply on Tuesday (Jan. 20, 2026) as investors awaited clarity on whether President Donald Trump’s proposed 10% cap on credit card interest rates would take effect. JPMorgan Chase dropped 3.1%, Citigroup slid 4.4%, Wells Fargo fell 1.9%, while Morgan Stanley and Goldman Sachs declined 3.7% and 1.9%, respectively. The White House said the proposal aims to improve affordability for consumers, but banks warned it could reduce credit availability because lenders would be unable to price risk adequately on unsecured loans. Trump urged companies to comply with the rule, though it remains unclear whether such a cap can be implemented without congressional approval. Bank executives and industry groups strongly opposed the move, arguing it would hurt consumers and the broader economy. Citigroup CEO Jane Fraser said Congress is unlikely to approve the cap, while JPMorgan CEO Jamie Dimon warned it would damage consumer access to credit and hinted at possible legal action. The American Bankers Association said up to 159 million cardholders could lose access to credit if the cap is enforced, and surveys suggest it would lead to higher fees and fewer card approvals. Analysts believe political compromise is still possible, and card issuers may respond with alternative products, such as lower-rate cards with fewer rewards or reduced credit limits.