Asian Stocks Surge on Easing US Inflation Concerns

The global market saw Asian stocks advance on Thursday as easing US inflation rates and declining oil prices alleviated concerns about potential interest rate hikes. South Korea's Kospi Index surged, reflecting a positive trend seen in US technology shares.

In the US, wholesale inflation dropped more than expected in July, impacting Treasury yields, while Federal Reserve officials expressed differing views on interest rate strategies.

The MSCI's Asia Pacific equities gauge advanced 0.4%, with South Korea's Kospi Index jumping almost 3%. The S&P 500 rose 0.7% to a record, and the Nasdaq 100 climbed over 1% to its highest level since late June as increased hyperscaler spending buoyed tech shares.

Treasuries rose as US wholesale inflation cooled in July, sending yields across maturities lower. The yield on the rate-sensitive two-year bond fell six basis points to 4.14%. Money markets now price in less than a 40% chance of a Fed rate increase in September.