AFP, Hong Kong

Asian markets saw big fluctuations Tuesday as Donald Trump took office warning he could impose stiff tariffs on Canada and Mexico next month but appeared to delay any action against China for now.

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

His comments came as he signed a slew of executive orders that indicated he could resume his hardball approach to global diplomacy and trade, including pulling out of the Paris climate accord and the World Health Organization.

He also gave social media app TikTok 75 days to find a buyer for its US business, after it missed a deadline Saturday ordering its Chinese owners ByteDance to sell its US subsidiary to non-Chinese buyers or be banned.

“We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people -- Canada’s a very bad abuser also -- vast numbers of people to come in, and fentanyl to come in,” he said in the Oval Office.

He had earlier said he would “immediately begin the overhaul of our trade system to protect American workers and families”. “Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” he announced in his inaugural address.

Markets in Asia and Europe had enjoyed a healthy run-up Monday -- with Frankfurt hitting another record -- on hopes Trump would take a more gradual approach to trade policy, after news of positive talks with Chinese President Xi Jinping added to the optimism.

That lack of mention of China fanned hopes the economic superpowers will not embark on another trade war.

And Beijing said Tuesday it hoped the two sides could cooperate on the issue, with foreign ministry spokesman Guo Jiakun saying it is “willing to strengthen dialogue and communication with the United States (and) properly manage differences”.

However, Trump’s warning to Ottawa and Mexico City caused some nervousness on trading floors.

Shanghai, Singapore, Seoul, Wellington, Manila and Mumbai fell while Tokyo, Sydney, Taipei, Bangkok and Jakarta rose.

Hong Kong advanced, with embattled Chinese developer Country Garden soaring as much as 30 percent at one point as trading in the firm resumed after a nine-month suspension. It ended 17.5 percent higher.