Asian equities tracked Wall Street’s gains as cooling US core inflation kept alive the prospect of Federal Reserve easing this year.
The yen climbed on Bank of Japan rate-hike expectations. Gauges in Australia, Hong Kong and South Korea all advanced, sending an index of Asian equities higher for a third day.
The S&P 500 rose 1.8% Wednesday, the benchmark’s best day since the November election, which erased its 2025 decline. US stock futures declined.
The yen rose on a report that BOJ officials see a good chance of a rate increase next week as long as Donald Trump’s arrival at the White House doesn’t trigger too many negative surprises.
Treasuries were little changed while an index of the dollar halted a two-day losing streak. “Risk appetite across the region has improved off the back of the US inflation data,” said Jun Rong Yeap, market strategist at IG Asia Pte.
“While US policymakers will still want to see more progress toward their inflation target before considering another rate cut, the data has helped to shift the timeline for the next rate cut forward.”
