Asian markets opened with modest gains, but Japan led the rally as its benchmark Nikkei 225 climbed 0.9% while the yen slipped past 159 per dollar – its weakest level since July 2024.
Why Japanese shares jumped
The yen’s drop came amid talk of a snap election, which made investors favor local equities. South Korean stocks also inched higher, marking a gain on every trading day of 2026 so far.
US markets pull back
In the United States, the S&P 500 slipped from a record high after JPMorgan Chase reported lower‑than‑expected investment‑banking fees, pulling down other lenders. The decline was amplified by cooler‑than‑expected December CPI data, keeping expectations that the Federal Reserve will wait until mid‑2026 before cutting rates again.
What traders are watching
- Supreme Court ruling on Trump tariffs: A decision expected on Wednesday could move markets, especially if the court rejects the administration’s global tariffs.
- Bank earnings: Bank of America, Wells Fargo, Citigroup, Goldman Sachs and Morgan Stanley will report later this week, with analysts expecting strong profits boosted by recent policy changes.
- Commodities: Brent crude posted its biggest four‑day gain since June after heightened rhetoric on Iran, while silver continued a three‑day rally.
Bottom line for investors
Japanese equities are benefiting from a weaker yen and political uncertainty, offering a short‑term boost for those holding Japan‑focused portfolios. In the US, caution remains as the Fed’s rate path stays delayed and legal uncertainty around tariffs lingers.
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.