Asian equities extended their advance on Thursday, fueled by a record high for Japan’s Nikkei 225 and optimism from Wall Street’s latest surge.
The Nikkei 225 climbed 0.73%, notching another all-time high, while the broader Topix index gained 0.45%. South Korea also saw robust gains, with the Kospi advancing 1.31%. Hong Kong’s Hang Seng index surged 1.46%, whereas China’s blue-chip CSI 300 remained flat and Shanghai Composite rose 0.37%. Meanwhile, Australia’s ASX 200 ticked up by 0.78%.
U.S. inflation inched higher last month, intensifying the debate around future monetary policy as economists and investors assess the economic impact of ongoing trade tensions and tariffs.
According to data released Thursday by the Bureau of Labor Statistics, consumer prices rose 2.9% on an annual basis in August, slightly accelerating from July’s 2.7% pace and broadly matching economist projections.
On a month-to-month basis, prices moved up by 0.4%, outpacing the 0.2% increase in July and exceeding estimates of a 0.3% gain. Experts cited stubbornly high gasoline prices and a rebound in food costs as primary drivers behind the uptick.
Core inflation, a measure that excludes the volatile categories of food and energy, saw a 3.1% increase from a year earlier, repeating the annual pace recorded in July. The core index advanced 0.3% from July, marking the second consecutive month at this level and representing the sharpest gain in half a year.
The positive sentiment followed substantial gains overnight in the United States. The Dow Jones Industrial Average shot up 617 points, or 1.36%, closing at 46,108. The S&P 500 rose 0.85% to finish at 6,587.47, while the Nasdaq Composite added 0.72% to close at 22,043.07.
Commodities, however, painted a different picture. Oil prices fell sharply as traders weighed the prospect of subdued U.S. demand and persistent supply growth, which outweighed geopolitical risks tied to ongoing conflicts in the Middle East and Ukraine. Brent crude settled at $66.37 a barrel, down $1.12 or 1.7%. U.S. West Texas Intermediate dropped $1.30, or 2%, to end the session at $62.37.
Meanwhile, gold prices trimmed earlier losses, trading near historic highs. Spot gold was last seen down 0.2% at $3,634.96 per ounce, just below Tuesday’s record peak of $3,673.95. Softer U.S. employment data has bolstered expectations that the Federal Reserve could lower rates at its next meeting, supporting the precious metal despite firmer inflation numbers.
