By Ambar Warrick

-- Most Asian stock markets rose on Wednesday after Federal Reserve Chair Jerome Powell struck a less hawkish tone than feared during a recent speech, while Japan’s Nikkei lagged on a slew of weak earnings.

Technology-heavy bourses tracked overnight gains on Wall Street, with South Korea’s , the index, and Hong Kong’s up between 0.4% and 1.3%.

In a , Powell reiterated that the U.S. was experiencing disinflation after a slew of sharp interest rate hikes through 2022. But he also warned that strength in the jobs market and stubborn inflation could spur more interest rate hikes this year.

Still, markets took his speech as a signal that the Fed’s rate hike cycle will eventually ease this year. The retreated overnight, as did .

But Japan’s index lagged its peers on Wednesday, losing 0.4% after disappointing results from Nintendo Co Ltd (TYO:), Softbank (OTC:) Group Corp (TYO:) and Sharp (OTC:) Corp (TYO:). The three stocks tumbled between 5.9% and 11.2% after logging surprise declines in their quarterly earnings.

Data on Wednesday also showed Japan’s surplus shrank sharply in December, as a persistent trade deficit and a weakened weighed. The reading, coupled with a rash of weak earnings raised concerns over slowing economic growth in the country.

Broader Asian stocks advanced, with risk-heavy Southeast Asian stocks among the best performers for the day. jumped more than 1% and were the best performers in the region.

But regional markets were reeling from a hotter-than-expected U.S. last week, which gives the Fed enough economic headroom to keep raising interest rates. A higher U.S. rate environment is negative for Asian markets, as it dries up foreign capital inflows to the region.

Chinese stocks were muted as markets awaited for January due later this week. The reading is expected to shed more light on a potential economic recovery after the country relaxed most anti-COVID measures earlier this year.

Indian stocks rose, with the and indexes adding 0.3% and 0.6%, respectively, in anticipation of a . The central bank is widely expected to hike rates by 25 basis points and announce a pause to its rate hike cycle, given the recent downturn in inflation.

Shares of firms under beleaguered conglomerate Adani Group extended their recovery into a second consecutive session after the group said it will start trimming its debt levels.

Ltd (NS:), the group’s flagship firm, jumped 10%.