Asian markets experienced an uptick on Thursday, driven by subdued inflation data from the U.S. that raised anticipations of further Federal Reserve interest rate reductions this year.
The U.S. dollar weakened, while the Japanese yen reached a new one-month peak amid speculation about potential interest rate hikes in Japan.
Gold remained steady, trading just below $2,700 per ounce. This stability follows comments from several Federal Reserve officials expressing confidence in achieving a 2% annual inflation rate.
Oil prices continued their rise after reaching multi-month highs in the preceding session. This uptrend was fueled by a larger-than-expected reduction in U.S. crude oil inventories and concerns about the impact of newly imposed U.S. sanctions on Iranian and Russian oil exports.
China's Shanghai Composite Index increased by 0.28% to 3,236.03 in anticipation of upcoming GDP data for the final quarter and other critical economic indicators, scheduled for release on Friday.
In Hong Kong, the Hang Seng Index rallied 1.23% to 19,522.89, propelled by gains in real estate and technology sectors.
Japanese stocks recorded modest gains despite the appreciating yen, driven by speculation of a possible Bank of Japan rate hike in the following week. The Nikkei average rose 0.33% to 38,572.60, whereas the broader Topix index ended slightly lower at 2,688.31.
Tech stocks advanced despite the U.S. unveiling additional export controls on advanced computing semiconductors. Key performers included Advantest, which rose 1.2%, SoftBank Group, up 2.2%, and Tokyo Electron, which surged 3.9%.
Japan's annual wholesale inflation rate remained stable at 3.8% in December, influenced by persistently high food prices. This report came a day after Bank of Japan Governor Kazuo Ueda stated that a debate regarding potential rate hikes would occur at the January 23-24 meeting.
In South Korea, stocks experienced a sharp rise after the Bank of Korea unexpectedly maintained its policy rate at 3%, following two consecutive rate cuts in the last quarter. The Kospi average climbed 1.23% to 2,527.49, driven by large-cap tech shares.
Australian markets rallied, buoyed by data showing a slight increase in the unemployment rate in December, which heightened speculation about a possible interest rate cut in February. The S&P/ASX 200 index rose by 1.38% to 8,327, led by gains in banking and technology stocks.
The broader All Ordinaries index finished 1.33% higher at 8,569.10. Commonwealth Bank of Australia, a leading lender, saw nearly a 3% increase after five consecutive sessions of losses.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index climbed 0.44% to 13,000.67, marking its highest level since January 9.
In the U.S., stock markets surged overnight as investors reacted positively to soft inflation figures and encouraging earnings reports from financial giants such as JPMorgan Chase, BlackRock, Goldman Sachs, and Citigroup.
Data indicated that the Consumer Price Index (CPI) rose at an annual rate of 2.9% in December, matching expectations and up from 2.7% in November.
Unexpectedly, the annual rate of core consumer price growth slowed to 3.2% from 3.3%, increasing speculation that the Federal Reserve may further ease rates.
The Nasdaq Composite, with a strong focus on technology stocks, soared by 2.5%, while the Dow Jones Industrial Average climbed 1.7% and the S&P 500 surged 1.8%, marking their largest daily percentage gains in more than two months.
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