Asian Stocks Surge Amid US Inflation Easing and Tech Rebound
Asian stocks continued their upward trend for the fourth week in a row, driven by moderating US inflation and strong technology sector performance. The MSCI's Asia-Pacific equities gauge rose 0.5%, its weekly advance reaching 2.7%. South Korea's Kospi Index led the region, with Samsung Electronics Co. and SK Hynix Inc. seeing their gains for the week surpass 15%.
The AI trade is gaining momentum as investors regain confidence in high-growth stocks. 'The modest easing of uncertainty surrounding US monetary policy has become a catalyst for tech rebound,' said Yugo Tsuboi, chief strategist at Daiwa Securities Co. 'With US inflation showing no signs of worsening, excessive concerns over the Fed turning hawkish have eased.'
US wholesale inflation cooled in July, with the producer price index rising 4.7% from a year earlier, down from 5.5% annual increase in June. This has reduced pressure on the Federal Reserve to raise interest rates next month.