US EditionAsian shares charge higher after US stocks rally to records on hopes for interest rate cuts
Markets responded to easing inflation and trade truce as traders priced in a 94% chance of a Federal Reserve rate cut in September, boosting Asian and US stock indexes.
- On Wednesday, Asian shares rose and the US dollar was subdued as data showed resilience in major economies and the need for central banks to remain accommodative.
- Following a weak August 1 jobs report, US Labor Department data showed the consumer price index rose 2.7% in the 12 months through July, slightly below forecasts and indicating tariffs had yet to filter down, easing stagflation worries.
- Asian stock benchmarks posted widespread gains as markets digested the inflation data, with the Nikkei 225 gaining 1.6%, Taiwan's Taiex up 0.8%, and India's Sensex adding 0.4%.
- Traders are pricing in a 94 per cent chance of a Fed rate cut in September, up from nearly 86 per cent a day earlier, according to the CME FedWatch tool.
- Amid an extended trade truce, China and the U.S. agreed to extend the pause in tariffs to allow more time for talks, supporting the recent rally.
47 Articles
47 Articles
Wall Street stocks surge on hopes for interest rate cuts by the Fed
U.S. stocks are ticking higher on Wednesday after a rally spurred by hopes for lower U.S. interest rates wrapped around the world.The S&P 500 rose 0.4%, coming off its latest all-time high. The Dow Jones Industrial Average was up 364 points, or 0.8%, as of 10:20 a.m. Eastern time, while the Nasdaq composite was adding 0.3% to its own record set the day before.Stocks got a lift from easing Treasury yields in the bond market, as expectations reach…
Channel News Asia
Asian shares rise, dollar defensive after mild inflation data
TOKYO :Stocks in Asia climbed and the U.S. dollar was subdued on Wednesday, as data showed both resilience in major economies and the need for central banks to remain accommodative.Wall Street scaled new heights on Tuesday, driven by increasing certainty the Federal Reserve will cut interest rates next month.
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