Asian Stocks Rally Ahead of Key US Inflation Data

Japan's stock market rose along with other Asian equities on Wednesday, ahead of key US inflation data that could influence interest rates. The MSCI Asia Pacific Index gained 0.8%, with all but one industry group advancing.

The Nikkei 225 futures rose 1% and Japan's Topix climbed 0.9%. Australia's S&P/ASX 200 also gained 1%. Hong Kong's Hang Seng was little changed, while the Shanghai Composite advanced 0.3%.

SoftBank, an investor in OpenAI, rose 6% after reports that the AI startup sought to raise at least $30 billion in fresh funding at a valuation of $1.4 trillion.

Bond yields steadied across the curve after rising earlier this week, as traders priced in further interest rate hikes by the US Federal Reserve due to elevated energy costs threatening persistent inflation and expectations for Fed tightening.