Asian stocks edged higher on Thursday, buoyed by a strong rebound in US tech shares overnight. Japan and South Korea led the gains as investors welcomed softer-than-expected inflation data from the US, raising hopes for a more measured approach from the Federal Reserve. However, optimism remained in check as renewed tariff threats from President Trump cast a shadow over the global trade outlook.
Markets across the region responded positively to the latest US Consumer Price Index (CPI) report, which showed inflation cooling more than anticipated. The overall CPI and core CPI both rose just 0.2% month-on-month in February, easing concerns of aggressive interest rate hikes. The NASDAQ Composite surged 1.2% overnight, fuelling confidence in Asia’s technology sector.
Japan’s Nikkei 225 gained 1%, with the broader TOPIX climbing 0.9%. Tech giants led the charge, with SoftBank Group rising 1.4% and Tokyo Electron advancing 1.8%. In South Korea, the KOSPI added 0.5%, supported by gains in Samsung Electronics and SK Hynix, which climbed 0.7% and 0.4%, respectively. Meanwhile, Malaysia’s FTSE Malaysia KLCI Index jumped 1.2%, and India’s Nifty 50 Futures inched 0.2% higher.
Despite the positive momentum, analysts warn that uncertainties remain. Trade tensions and geopolitical risks could still drive market fluctuations in the coming weeks. While cooling inflation is a welcome sign, investors remain cautious about the broader economic landscape and potential policy shifts.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
