Asian Stocks Rally on Slowing US Inflation and Easing Rate Hike Fears
Asian stocks rose Thursday, led by Seoul's tech sector, as investors cheered a slowdown in US inflation and easing interest rate hike fears.
The Consumer Price Index (CPI) report for July showed inflation at 2% target, but with a stubbornly high reading above the target for five years. The Federal Reserve still plans to tighten borrowing costs, but the odds of a September rate hike have been pushed out.
Neil Wilson at Saxo Markets noted that 'it looks as though this was soft enough for the market to give the Fed more time to sit around with inflation above target.'
The S&P 500 ended Thursday's trading session in positive territory, followed by most of Asia. The Kospi surged almost 5% in Seoul amid a revival of the AI trade that fueled its previous surge.