Asian Shares Rise as More U.S. Inflation Data Comes in Softer than Expected

Asian shares traded higher on Friday as further U.S. inflation data came in softer than predicted, fueling expectations that inflation might be brought down without negatively impacting the labor market.

As of 9.34 A.M. Bangkok time, Australia’s S&P/ASX 200 climbed 0.64%.

In Japan, the Nikkei 225 edged 0.10% higher, while South Korea’s Kospi rose 1.25%.

Hong Kong’s Hang Seng index gained 0.44%. In mainland China, the Shanghai Composite added 0.10%.

Overnight in the U.S., the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all finished at record highs, marking their fourth consecutive day of advances.

The Dow Jones Industrial Average gained 0.14%, while the S&P 500 rose 0.85%. The Nasdaq Composite rose by the greatest, 1.58%.

In June, the U.S. producer price index rose less than expected, by 0.1% year over year, and the core PPI, which excludes volatile food and energy prices, rose 0.1%, which was also lower than predicted.

However, the president of the Federal Reserve Bank of San Francisco, Mary Daly, told CNBC on Thursday that it is too soon for policymakers to conclude they have done enough to return US inflation to their objective. Despite the fact that the most recent report on consumer prices was “very positive,” the official stated, “I remain resolute to bring inflation down to 2%.”

In order to bring inflation down to target, Federal Reserve Governor Christopher Waller indicated he expected two more rate hikes this year.