India, Jan. 13 -- Asian stock markets are trading mostly higher on Wednesday, despite the broadly negative cues from Wall Street overnight, boosted by the continuing record run by Japan's Nikkei. Report showing US consumer prices increased in line with estimates, while core consumer prices rose by slightly less than expected, has added to recent optimism about the outlook for interest rates. Asian markets closed mostly higher on Tuesday.

While the US Fed is widely expected to leave interest rates unchanged at its January meeting, the central bank is still seen as likely to cut rates by at least another quarter point in the coming months.

Australian shares are trading modestly lower on Wednesday after opening in the green, reversing some...