Asian Stocks Soar on Easing US Inflation Fears

Hong Kong's stock market rebounded on Thursday as investors cheered the slower-than-expected US inflation rate, which eased concerns of further interest rate hikes. According to a report from the Federal Reserve, the consumer price index (CPI) for July was in line with forecasts, but still above the bank's two percent target.

Neil Wilson at Saxo Markets noted that 'July marked 65 consecutive months with inflation running above target,' but added that 'odds of a rate hike in September were pushed out' due to the recent data. As a result, stock futures are firmer, and the dollar is weaker, while gold prices have increased.

The South Korean Kospi surged almost five percent in the opening minutes, driven by a revival of the AI trade that fueled its earlier surge to multiple records this year. Chipmakers SK hynix and Samsung led the charge as they clawed back losses sustained during the sector-wide global rout from June and July.

Elsewhere in Asia, Tokyo, Shanghai, Wellington, and Taipei were all higher, while Hong Kong, Singapore, and Sydney dipped. Oil prices slipped more than one percent due to ongoing tensions between the US and Iran.