Asian stocks rise as rate hike bets ease, South Korea’s Kospi Index rallies 3.7%
US CPI reading and a cooler-than-expected US jobs report ‘may keep hawkish Fed officials at bay in September’, says Wells Fargo Investment
Asian markets experienced a rise on Wednesday as worries about an imminent interest rate hike by the US Federal Reserve eased, with technology shares leading the rally. The US CPI reading and a cooler-than-expected US jobs report suggested hawkish Fed officials might be kept at bay in September. MSCI's Asia-Pacific equity index rose 0.8%, with chipmakers Samsung Electronics and SK Hynix driving the gains.
South Korea's Kospi Index rallied 3.7% to enter a technical bull market, buoyed by a rebound in the artificial intelligence trade. Cisco Systems' shares fell 4.1% after earnings disappointed, while Cerebras Systems dropped 17% due to a decline in hardware sales. Brent oil prices fell 1.2% to under $88 a barrel, and the yen traded around the key level of 160 per US dollar.
US consumer prices rose 0.2% in July, in line with forecasts, but a key underlying inflation measure matched its slowest pace since March 2021. Investors remain cautious due to persistent price pressures and volatile oil markets.
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