Most Asian markets extended a global rally Wednesday as investors gave a cautious welcome to Donald Trump's first full day in office amid hopes he will take a more cautious approach on trade than initially feared.

Software investment giant SoftBank soared more than nine percent -- leading Tokyo-listed chipmakers higher -- after the American president said it was included in a new $500-billion venture to build infrastructure for artificial intelligence in the United States.

However, Hong Kong and Shanghai fell after the tycoon warned China could be included in a list of countries to be hit with tariffs on February 1 "based on the fact that they're sending fentanyl to Mexico and Canada".

Traders have been bracing for Trump 2.0 since his re-election in November, with an initial rally -- fuelled by hopes for market-boosting measures -- giving way to worries he would resume his trade war with Beijing and also target others.

There is also a concern that his plans to slash taxes, immigration and regulations will reignite inflation and crimp the Federal Reserve's ability to cut interest........

© International Business Times