Softer US CPI data and strong AI-driven tech earnings lift Asian equities, with Japan’s benchmark index hitting a key milestone.
Asian stocks extended gains after US inflation data aligned with expectations, fueling bets on a less aggressive Federal Reserve. Headline CPI rose 3.4% year-over-year in July, down from 3.5% in June, while core CPI eased to 2.5% from 2.6%.
Markets now price a 40.1% chance of a September rate hike, down from prior expectations, with December seen as the next likely move. Tech shares led the rally, driven by robust earnings and growing AI infrastructure investment.
Japan’s Nikkei 225 climbed 1.63% to 68,600, supported by domestic producer prices rising 7.2% in July, below forecasts. South Korea’s KOSPI surged 4.22%, with chipmakers like Samsung Electronics gaining nearly 5% on US tech momentum.