Asian Stocks Rise on Soft US Inflation, Tech Rally
Asian stock markets rose on Friday, setting up their best weekly performance since mid-June. The rally was fueled by soft U.S. inflation data, which reduced expectations of a Federal Reserve rate hike and extended the tech rebound.
The S&P 500 closed at a record high on Thursday, while the Nasdaq Composite Index reached its highest level since late June. In Asian trade, the Nikkei 225 slipped about 0.1%, while S&P 500 Futures were little changed.
U.S. producer prices were unchanged in July, below forecasts for a 0.2% increase. Annual PPI inflation slowed to 4.7% from 5.5% in June. Fed funds futures now imply about a 35% chance of a hike, down from 55% a week ago.
South Korea's KOSPI rose 1.6%, while Japan's Nikkei 225 climbed 0.7%. The Hang Seng Index gained 0.8%. Chipmakers led the rally in both South Korea and Japan, with Samsung Electronics rising 3.4% and Taiwan Semiconductor Manufacturing Co. up 2%.
China tech stocks lagged behind, however. JD.com plummeted after its earnings showed revenue fell year-on-year for the first time in more than a decade. The company's share price dropped 10%.