Asian stocks climbed Thursday after US equities snapped a two-day slide on benign inflation data that supported expectations of a Federal Reserve interest-rate cut this month.
Chinese and Japanese equities led gains in the region, with the MSCI Asia Pacific index climbing the most in a week.
A gauge of Chinese shares trading in Hong Kong rallied as much as 2% while the mainland benchmark CSI 300 Index jumped nearly 1%. US stock futures edged lower.
“Little surprises on the inflation front have paved the way for a more supportive risk environment across the region,” said Jun Rong Yeap, market strategist at IG Asia Pte.
“The broader theme around a US soft landing, Fed’s easing and positive year-end seasonality may continue to see the equities markets squeezing out gains to end the year well, coupled with less over-bought conditions.”
US consumer price index data released on Wednesday was in line with expectations, cementing forecasts for the Fed to cut rates by 25 basis points later in December.
