Asian markets opened modestly higher, with Japan’s Nikkei 225 leading the gain, while US stocks slipped after mixed earnings and inflation data.
Japanese stocks rise as the yen weakens
The Nikkei 225 jumped 0.9% after the yen fell past the 159‑per‑dollar mark, its weakest level since July 2024. The currency drop helped boost exporters and sparked a rally in Japanese equities. Reports of a possible snap election in Japan added to the optimism.
- Yen traded below ¥159 per USD.
- Five‑year Japanese government yields rose to 1.615%, the highest since 2000.
- Prime Minister Sanae Takaichi’s potential snap election could keep the market momentum going.
South Korean market stays upbeat
South Korean shares edged higher, extending a streak of daily gains throughout 2026.
US stocks retreat after JPMorgan miss and inflation data
In the United States, the S&P 500 fell from its all‑time high. JPMorgan Chase reported investment‑banking fees below expectations, pulling down other major banks. Meanwhile, the December core CPI rose only 0.2% month‑over‑month and 2.6% year‑over‑year, matching a four‑year low.
- Core CPI increase: 0.2% MoM, 2.6% YoY.
- Analysts expect the Federal Reserve to pause rate cuts until mid‑2026.
Supreme Court tariff case on the horizon
Traders are watching for a possible US Supreme Court decision on the global tariffs announced by former President Donald Trump. A negative ruling could shake markets, although the administration has other legal options.
Commodity moves: Brent crude and silver
Brent crude recorded its biggest four‑day gain since June, driven by heightened rhetoric around Iran. Silver continued its rally, posting a record three‑day winning streak.
What this means for retail investors
The combination of a weaker yen, steady Japanese stock gains, and a delayed Fed rate‑cut schedule creates both opportunities and risks. Investors may consider:
- Focusing on export‑heavy Japanese stocks that benefit from a soft yen.
- Monitoring US bank earnings for further guidance.
- Keeping an eye on the Supreme Court’s tariff ruling for potential market volatility.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.