Asian Stocks Rise, Australian Dollar Increases Following CPI – Asia Market Wrap

Asia’s stocks increased after a tech bounce in the US and new economic data that stoked expectations of a US interest rate decrease.

With benchmarks ranging from Hong Kong to Japan and South Korea all in the green, the MSCI Asia Pacific Index saw the largest monthly increase. The strength of their American counterparts was mirrored in the region’s chip-related stocks. Futures in the US and Europe also progressed.

In contrast to the generally weaker US dollar, the Australian dollar gained 0.5% following a strong inflation report that indicated persistent local price pressures and supported the central bank’s decision to maintain rates at a 12-year high. Leading the increases in Asian currencies was the South Korean won. Treasuries remained relatively stable.

Forecasts for softening Federal Reserve policy this year were supported not just by the impressive performance of the US IT giants but also by indicators of business activity in the largest economy in the world showing signs of deterioration. Similar to Wall Street, tech profits are the talk of the town in Asia, where the corporate results week is about to begin.