Asian Stocks Rise Most on Tech in Nearly a Month – Asia Market Wrap

Asia’s stocks climbed for the first time this week on Thursday, as Wall Street’s tech-fuelled rise rippled throughout the region.

Risk appetite returned as US inflation figures for August backed predictions on a Fed rate cut next week. Benchmarks in Japan, South Korea, and Taiwan climbed, propelling the MSCI Asia-Pacific Index to its largest increase in nearly a month.

Traders have swung between optimism that the Fed will guide the US economy to a soft landing and fear that the central bank has left it too late to cut rates. While swaps have now priced in a 25 bps rate reduction next week, debate over the path for further reductions continues, and some investors say markets have overpriced expectations.

In Japan, the Nikkei index ended a seven-day losing skid after the US inflation report pushed the yen lower from its highest level versus the Dollar since December. A regional index of technology equities soared more than 3% after Nvidia Corp. gained 8.2% overnight, with TSM among the top gainers. China’s stocks were mixed.

The CPI index rose 0.3% from July, the most in four months, and 3.2% from the previous year. The Bureau of Labour Statistics released results on Wednesday. The Dollar index remained flat after dropping on Wednesday. Oil maintained gains from Wednesday as Hurricane Francine ravaged through critical oil-producing zones in the Gulf of Mexico, causing traders to cover bearish wagers.