Asia-Pacific Indexes Surge after Slower-than-Expected US Inflation Report, Hong Kong Shares Gain 5%

Shares in Asia-Pacific climbed on Friday, with the Hong Kong market gaining more than 5%, as slower-than-expected US October inflation fueled hopes that the Federal Reserve will moderate its aggressive rate-hiking pace.

As of 9.29 A.M. (Thai time), the Hong Kong Hang Seng Index rose 5.15% with the Hang Seng Tech index rising 6.53%. In mainland China, the Shenzhen Component added 1.53%.

The Nikkei 225 in Japan jumped 2.64%, while the Kospi in South Korea climbed 2.69%. 

In Australia, the S&P/ASX 200 was 2.45% higher.

Overnight on Wall Street, equities rose the most in two years following the October reading of the consumer price index, which increased by 0.4% for the month and 7.7% year on year, the lowest annual gain since January.

Core inflation which excludes volatile food and energy costs rose 0.3% for the month and 6.3% on an annual basis. Both figures were also lower than the consensus for 0.5% and 6.5%.

In October, prices for medical care services, used vehicles and apparel declined, while shelter costs recorded the highest monthly gain since 1990.