Asian Stocks Rise Ahead of US CPI – Asia Market Wrap

Stocks in Asia rose on expectations that the upcoming US consumer price report would allow the Federal Reserve to begin relaxing in September. The New Zealand currency fell after the country’s central bank surprised investors by cutting interest rates.

The MSCI Asia Pacific Index increased for the fourth straight session, with shares in New Zealand and Taiwan rising more than 1%. The gains occurred after the US producer price index grew less than expected, fuelling a 1.7% jump in the S&P 500. Japanese stocks moved with the yen.

The easing of pricing pressures in the United States has boosted confidence that officials may begin to reduce borrowing costs and focused on boosting the labour market. The recovery in risk sentiment and the dollar’s weakness boosted Asian currencies. The Indonesian rupiah climbed up to 1%, while the Singapore dollar remained near this year’s high.