Stock markets move higher after Trump inauguration

Stock markets in the Asia-Pacific region have moved higher after President Donald Trump outlined a pro-business agenda for his second term in the White House and stopped short of imposing new trade tariffs on his first day in office.

During his inaugural address, Trump pledged to bring in a new "golden age" for America.

He has promised an ambitious agenda - including trade reforms, lower taxes and cuts to government regulations - which has the potential to boost company profits.

But some economists have warned that the measures may also raise inflation, which in turn could force the Federal Reserve to increase interest rates.

In morning trade, Japan's Nikkei 225 index was about 0.4% higher, South Korea's Kospi was up 0.6% and stocks on Australia's ASX 200 rose by around 1%.

Meanwhile, the dollar was lower against some other major currencies, including the pound and the euro.

US markets were closed on Monday for the Martin Luther King Jr Day holiday.

During the election campaign, Trump pledged tariffs of 10% on all imports into the US and hit China with a 60% import tax, while products from Canada and Mexico would be subject to 25% tariffs.

He has said tariffs will make Americans richer, although critics say the costs are likely to be passed on to consumers.

The President has also said he would create an "External Revenue Service" to collect all tariffs, duties and revenues from foreign sources.