Asian equities rose as US-Russia talks spurred expectations for an end to the war in Ukraine. Risk sentiment was also stoked by the improving prospects for Chinese markets.
A gauge of equities in Asia climbed for a second day, led by shares in Japan and Hong Kong. European stock index futures gained about 1% and S&P 500 contracts also advanced.
Global markets looked past the higher-than-expected US inflation figures — which eroded bets on rate cuts — with traders focusing on US President Donald Trump’s Ukraine peace talks with Russia. The euro rose versus most of its Group-of-10 peers, strengthening 0.5% against the dollar.
The upswing in risk appetite came after the Asian regional stock gauge underperformed its global peers so far this year as Trump’s tariff threats, a stronger dollar and China’s lack of domestic policy stimulus weighed on the market.
Chinese equities though have been lifted in recent weeks by an artificial intelligence breakthrough.
“The warmer tone in the risk environment across the region reflects some shrug-off of the higher-than-expected US inflation,” Jun Rong Yeap, market strategist at IG Asia Pte., wrote in a note.
“More inflation data is needed to establish a trend and markets were already positioned for a prolonged Fed hold.”
