Asian markets mostly rose on Wednesday as Japanese stocks continued to outperform, extending a record-setting rally while yen weakened further. Hong Kong’s HSI traded at 27,037, up 188 points or 0.7%. Nikkei also inched higher, jumping 864 points or 1.6% to 54,413. Shenghai and Shenzhen also traded in green, up 1.11% or 1.83%. Meanwhile, in South Korea, Kospi was down 4 points, around 9 am IST. The regional performance followed a softer close on Wall Street overnight. US stocks retreated on Tuesday, with the S&P 500 pulling back from a record high. Losses were led by banking shares after JPMorgan Chase & Co. reported investment-banking fees that fell short of guidance, dragging the broader sector lower. The move came despite December inflation data, which failed to materially shift expectations that the Federal Reserve will pause further interest-rate cuts. Market participants are now positioning ahead of Wednesday, with attention focused on a possible US Supreme Court ruling on President Donald Trump’s global tariffs announced in April. At the same time, a cooler-than-expected reading in the US consumer price index strengthened bond traders’ expectations that the Federal Reserve will hold off on rate cuts until mid-year, Bloomberg reported. Investors are also tracking a heavy slate of bank earnings. After JPMorgan reported on Tuesday, results from Bank of America Corp., Wells Fargo & Co., Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley are scheduled for release on Wednesday and Thursday. Collectively, the group is expected to record its second-highest annual profit on record, helped by policy changes under the Trump administration. The prospect of a Supreme Court ruling on tariffs remains a key risk. An unfavourable outcome for US President Donald Trump could trigger a negative market response, even as the administration retains alternative legal routes to enforce most of the levies. In commodities, Brent crude extended gains, posting its largest four-day rise since June as Trump intensified rhetoric around Iran. Silver also continued to climb, stretching its rally to mark the strongest three-day run on record.
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