Asian Stocks Surge as US Inflation Data Eases Rate Hike Fears

Asian stocks surged on Friday, mirroring Wall Street's record-breaking performance, as US inflation data softened expectations of an imminent interest rate hike by the Federal Reserve.

The S&P 500 ended at a record high and the Nasdaq saw its highest close since June after the producer price index slowed sharply in July, coming in below forecasts.

Investors are now pricing in less than a 40% chance of a September rate hike, down from 50% last week, as the market shifts focus to what would force the Fed to tighten monetary policy.

Stephen Innes, global strategist at Quintex Intel, noted that 'the burden of proof has flipped' and the market now wants to know what would justify a rate increase.