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Asian Markets Surge on Cooling U.S. Inflation Data

A 0.1% rise in U.S. consumer prices for July has calmed global markets, fueling a rally across Asian exchanges as investors bet against a Federal Reserve rate hike next month. The cooling inflation signal provided the necessary catalyst to lift regional indices despite lingering uncertainty surrounding oil demand.

Asian Markets Surge on Cooling U.S. Inflation Data

The broader Asia-Pacific stock index climbed more than 1% during Thursday’s trading session. South Korean markets led the regional charge with a 3.78% gain, while Japan’s Nikkei index followed with a 1.67% increase. Investors in Tokyo focused heavily on chip-related equities, bolstered by robust earnings expectations that overshadowed broader economic caution.

While equity markets responded with enthusiasm, the energy sector remained under pressure. Oil prices softened as traders weighed the cooling inflation data against persistent concerns over global demand. Geopolitical friction also remains a factor; stalled peace negotiations between Iran and the U.S. continue to cast a shadow over energy markets and broader economic stability.

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