Now Reading: Asian stocks extend gains as softer US inflation lifts tech shares
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Asian stocks extend gains as softer US inflation lifts tech shares
Asian stocks extend gains as softer US inflation lifts tech shares
Asian stocks rose for a fourth straight week as moderating US inflation reduced expectations of a Federal Reserve rate increase next month. The MSCI Asia-Pacific equities gauge gained 0.5%, taking its weekly…
The Story in Brief
Asian stocks rose for a fourth straight week as moderating US inflation reduced expectations of a Federal Reserve rate increase next month. The MSCI Asia-Pacific equities gauge gained 0.5%, taking its weekly rise to 2.7%. South Korea’s Kospi led regional markets, while Samsung Electronics and SK Hynix advanced more than 15% over the week.
US wholesale inflation rose 4.7% year-on-year in July, down from 5.5% in June, and was unchanged from the previous month. Technology shares continued their recovery from last month’s sell-off, with the S&P 500 closing at a record high and the Nasdaq 100 gaining more than 1%. Money markets now price a 35% chance of a US rate increase in September.
The Indian Opinion
The easy story is that one softer inflation reading has cleared the way for a lasting technology rally. That is premature. AI demand remains strong, but high valuations leave chip shares exposed if earnings disappoint. The opposing claim that markets face an imminent rate shock also looks weaker after two benign inflation reports and softer jobs data. September inflation and employment figures, followed by the Fed’s decision, will provide the real test, not this week’s 2.7% regional gain.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
