July US CPI slowed to 3.4% YoY, fueling Fed rate-cut bets and lifting regional stocks alongside strong tech earnings.
Asian stocks advanced as softer US inflation data bolstered expectations for Federal Reserve rate cuts. July’s headline CPI rose 3.4% year-over-year, easing from June’s 3.5% print and aligning with forecasts for a more accommodative monetary policy.
The rally was supported by strong earnings from AI-related tech firms, reinforcing sector momentum. Markets had priced in a 25-basis-point Fed cut by September, with cooling inflation adding to optimism.
Regional benchmarks extended gains, led by technology and export-driven sectors, as investors recalibrated rate-cut probabilities.