Asian Markets Surge on Softer US Inflation Data, Tech Stocks Lead
Asian markets advanced after weaker-than-expected U.S. inflation data boosted global risk sentiment and reduced expectations of an imminent Federal Reserve rate hike. South Korea's KOSPI surged 6%, led by a strong rebound in technology stocks, while Japan and Australia also posted gains.
Asian equities rallied sharply on Wednesday after U.S. inflation came in below forecasts, cooling fears of an aggressive Federal Reserve tightening cycle. The data fueled a broad risk-on move, with South Korea’s KOSPI jumping 6% as technology shares rebounded strongly from recent losses.
Japan’s Nikkei and Australia’s ASX 200 also closed higher, supported by overnight gains on Wall Street. U.S. markets were lifted by strong bank earnings and a rally in semiconductor stocks, which further reinforced positive sentiment across the Asia-Pacific region.
The softer CPI reading tempered expectations that the Fed would hike rates at its next meeting, encouraging investors to rotate back into risk assets. Traders now await further economic data to gauge the pace of monetary policy adjustments.
Source: First Squawk