Seoul leads Asian stocks higher as easing US inflation revives tech rally

On August 13, Asian stocks experienced a significant gain, with Seoul leading the rally, according to wire material. This boost in confidence was driven by the easing of US inflation fears following data that indicated a slowdown in July. The Consumer Price Index (CPI) report showed that inflation remained above the Federal Reserve's 2% target for over five years.

Neil Wilson from Saxo Markets noted that the US CPI report pushed back the likelihood of a September rate hike, allowing the market to give the Federal Reserve more time to sit on inflation. Consequently, stock futures strengthened, the dollar weakened, and gold prices rose, supporting the bullish outlook for equities. South Korea's Kospi surged almost 5% in the early hours of trading, driven by a resurgence in the AI sector, which had propelled markets to record highs earlier in the year.

South Korean chipmakers SK hynix and Samsung benefited from this recovery, as they recovered from the sector-wide losses suffered in June and July. Other Asian markets, including Tokyo, Shanghai, Wellington, and Taipei, also saw gains, although Hong Kong, Singapore, and Sydney experienced declines.