Business
Asian shares post modest early gains, Yen weakens
The Nikkei 225 Stock Average advanced 0.9%, with the Japanese currency slipping past the 159-per-dollar level to the weakest since July 2024. Stocks in the country have jumped and the currency fallen amid reports of a snap election. Shares in South Korea edged up, having posted a gain on every trading day of 2026.
In Tuesday’s US session, the S&P 500 fell from an all-time high, as JPMorgan Chase & Co. led a slide in lenders after its investment-banking fees missed guidance. US benchmarks dropped after December inflation data did little to dent expectations that the Federal Reserve will pause interest-rate cuts.
Traders are going into Wednesday awaiting a possible US Supreme Court ruling on President Donald Trump’s global tariffs that were announced in April.
Meanwhile, the cooler-than-expected US consumer price index reading reinforced bond traders’ expectations that the Fed will wait until mid-year to cut rates. Even after Fed Chair Jerome Powell and his board lowered the benchmark three times last year, money markets have continued to project the next reduction only in mid-2026.
“The initial excitement sparked by a cooler-than-anticipated core CPI was short-lived,” said Jose Torres at Interactive Brokers. “The reversal was influenced, in part, by the report’s failure to pull forward the next expected rate reduction from June to April, as fixed-income watchers project Powell’s December cut will be his last at the helm.”
Following JPMorgan’s results Tuesday, earnings from megabank rivals Bank of America Corp., Wells Fargo & Co., Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley are slated for Wednesday and Thursday. The group is expected to post its second-highest annual profit ever, boosted by Trump’s policy changes.Traders also are mindful of the potential for a US Supreme Court ruling Wednesday on tariffs the White House has been enforcing. An adverse ruling could draw a negative market reaction, even as the administration has alternative legal avenues for most of the levies.
Elsewhere, Brent crude notched its biggest four-day gain since June as Trump ramped up rhetoric on Iran, while silver also extended its recent rally to cap its best three-day streak on record.
