Cooler-than-expected US inflation data boosts Asian equities, with South Korea’s Kospi surging over 5% before trading halts.
Asian stocks rose Wednesday after softer US inflation data reduced expectations for a July Federal Reserve rate hike. The report fueled risk appetite, particularly in semiconductor stocks, driving broad gains across the region.
South Korea’s Kospi led the rally, climbing 5.6% before trading was briefly suspended. SK Hynix and Samsung Electronics surged 11% and 6.84%, respectively. Japan’s Nikkei also advanced but pulled back from intraday highs ahead of ASML earnings, reflecting caution over the chip sector’s outlook.
Oil prices extended gains amid geopolitical tensions, including a US naval blockade of Iranian ports. Markets appeared to separate geopolitical risks from the dovish US inflation narrative, supporting both equities and commodities.