Asian stocks today: Kospi, Nikkei rally up to 6% after soft US inflation data eases rate hike concerns

Asian stocks today: Asian markets advanced after softer-than-expected US inflation data strengthened expectations of Federal Reserve interest rate cuts, while renewed optimism around the artificial intelligence (AI) sector further lifted sentiment.

South Korea's Kospi surged 6.3% at the open, while the small-cap Kosdaq climbed 4%. Heavyweights SK Hynix and Samsung Electronics advanced more than 10% and 6%, respectively.

The Korea Exchange also triggered a buy-side sidecar on the Kospi after Kospi 200 futures jumped 5%, resulting in a five-minute halt in programme buying.

Elsewhere, Japan's Nikkei 225 and Topix each rose 0.9%, while Australia's S&P/ASX 200 gained 0.6%.

What's driving Asian markets today?

US Treasuries stabilised after a strong rally on Tuesday pushed bond yields sharply lower, as traders scaled back expectations that the Federal Reserve would begin raising interest rates as early as this month.

Meanwhile, the US dollar weakened against all other major G10 currencies, while gold maintained its previous session's gains, trading near $4,050 an ounce.

Oil prices extended their gains for a third straight session after US President Donald Trump threatened additional strikes on Iran, just hours after the US resumed its blockade of Iranian shipping through the Strait of Hormuz.

Brent crude, the global benchmark, climbed 1.8% to trade above $86 per barrel, adding to the 11% surge recorded over the previous two sessions.

Softer-than-expected US inflation data, coupled with a robust start to the corporate earnings season, has reignited enthusiasm for artificial intelligence-related stocks, lifting the technology sector after recent volatility.

The benign inflation print has given the Federal Reserve greater flexibility to keep interest rates unchanged. However, escalating tensions in West Asia continue to cast a shadow over the inflation outlook, as the risk of higher energy prices could fuel fresh inflationary pressures.

US stock market today

US stocks ended lower on Monday, led by technology shares, after President Donald Trump announced plans to reinstate a blockade on Iranian ports, marking the latest escalation in US-Iran tensions. The development pushed oil prices higher and weakened investor risk appetite.

The tech-heavy Nasdaq recorded the steepest decline, followed by the S&P 500. Meanwhile, losses in the Dow Jones Industrial Average were limited as gains in energy stocks, driven by a surge in crude oil prices amid restricted traffic through the Strait of Hormuz, provided some support.

The Dow Jones Industrial Average fell 138.31 points, or 0.26%, to close at 52,498.70. The S&P 500 dropped 59.92 points, or 0.79%, to 7,515.47, while the Nasdaq Composite tumbled 408.43 points, or 1.55%, to end at 25,873.18.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.