Asian markets gain boosted by US inflation

Major Asian stocks edged higher on Thursday, boosted by better-than-expected U.S. inflation data that boosted hopes for less aggressive rate hikes from the Federal Reserve.

According to data released yesterday in the US, the Consumer Price Index rose in July at an annual rate of 8.5%, down significantly from June’s 41-year high of 9.1%. A slowdown that was even significantly greater than the one expected by analysts, who expected a milder decline to 8.7%.

On a month-on-month basis, inflation was unchanged, while the structural part of the Index, which excludes highly volatile food and energy prices, was unchanged year-on-year at 5.9% versus market estimates for an acceleration of 6.1% .

Easing inflationary pressures appeared to confirm estimates that the U.S. central bank may now ease monetary policy tightening, which boosted tech stocks, cryptocurrencies and other growth investments that were among the biggest losers of the year due to of the Fed’s aggressive rate hikes.

Asian markets led the rise on Thursday, with Hong Kong, Shanghai and Seoul gaining more than 1%. In Tokyo, the stock market remained closed on Thursday due to a holiday.

In particular, the Hang Seng index in Hong Kong rose 1.7% to 19,959.31 points, while in mainland China the Shanghai Composite index gained 1.1% to 3,288 points. Seoul’s Kospi 180721 rose 1.2 percent to 2,513.22 and Taiwan’s Taiex gained 1.5 percent.

Australia’s S&P/ASX 200 also gained 1.12% to 7,071 points, while Thailand’s SET index rose 0.4% after the country’s central bank raised its benchmark interest rate by 0.25 percentage points to 0 .75% a day earlier. The Southeast Asian country’s economy has been hit hard by the pandemic, which has devastated its all-important tourism sector.