Asian stocks gain on drop in US inflation rate
Tech shares led the rally as cooler U.S. consumer prices eased bets on a near-term Federal Reserve rate hike, while IBM fell more than 25% after weak results.
- Asian stock markets rose following a softer-than-expected US inflation report that reduced fears of an interest rate hike this month, with Seoul's market leading gains due to a tech sector rebound and Japan’s Nikkei also gaining.
- US consumer prices increased by 3.5% in June, marking the sharpest inflation pullback in six years and easing pressure on the Federal Reserve for immediate rate hikes.
- Federal Reserve boss Kevin Warsh warned lawmakers that inflation had not been defeated and emphasized ongoing efforts to manage high prices.
- US President Donald Trump canceled plans for levies on shipping through the Strait of Hormuz but reimposed a naval blockade on Iranian ports amid rising oil prices and renewed tensions in the Middle East.
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13 Articles
Seoul leads Asian stocks higher as US inflation eases rate fears
The mood was also lifted by strong Wall Street earnings, while US President Donald Trump's U-turn on threats to impose levies on cargo through the Strait of Hormuz provided a little support. Still, oil prices extended their rally Wednesday as American forces again hit Iranian sites and the US president reimposed a naval blockade of ships sailing to and from the country's ports. Crude is up more than 10 percent since the two countries hostilities…
Asia Stocks Rally as U.S. Inflation Slows and Oil Market Calms
Asian stock markets surged after a surprise decline in U.S. inflation dampened interest rate hike expectations. South Korea's KOSPI index and Japan's Nikkei showed notable gains. Despite IBM's significant stock drop, positive earnings from Wall Street banks buoyed markets. The U.S. dollar weakened, and China's economic growth missed projections.
Investors in Asia are also hoping for an early end to high interest rates in the US. The most important indices are rising at the start of trading.
Asian stocks gain on drop in US inflation rate
Asian markets were higher on Wednesday after a surprise slowdown in U.S. inflation scaled back market expectations for interest rate hikes, while oil took a breather as the U.S. scrapped a plan to levy shipping through the Strait of Hormuz.
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