Asian markets rallied on Wednesday, following a strong performance on Wall Street overnight, as investors breathed a sigh of relief after tame inflation data from the US. The S&P 500 index closed 1.1% higher, marking its best day in over two weeks, as the latest consumer price index (CPI) data showed a slower-than-expected increase in inflation.
The US Labor Department reported that the CPI rose 0.3% in August, below market expectations of a 0.4% increase. The core CPI, which excludes food and energy prices, rose 0.1%, also below expectations. The data suggests that inflationary pressures may be easing, which could give the Federal Reserve room to slow down its pace of interest rate hikes.
The positive sentiment was also driven by a surprise drop in Australia’s jobless rate, which fell to an 8-month low of 5.1% in August. The Australian Bureau of Statistics reported that the economy added 33,500 new jobs, exceeding expectations of a 15,000 increase.
In Asia, Japan’s Nikkei 225 index rose 1.3%, while South Korea’s Kospi index gained 1.5%. Hong Kong’s Hang Seng index advanced 1.2%, and China’s Shanghai Composite index added 0.8%. The Australian benchmark S&P/ASX 200 index climbed 1.1%.
The rebound in global markets comes after a tumultuous few weeks, marked by rising trade tensions and concerns over slowing economic growth. The latest inflation data and jobs report from Australia have provided a much-needed boost to investor sentiment, suggesting that the global economy may be more resilient than initially thought.
