Asian stocks climb on softer US inflation numbers

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Mainland China stocks open 2.1% higher as the US dollar index slides more than 2% overnight

Singapore — Asian shares spiked higher on Friday, while the dollar nursed steep losses after a smaller-than-expected increase in US consumer prices fuelled hopes that the Federal Reserve could tone down its aggressive pace of interest rate hikes.

The US consumer price index climbed 7.7% year on year — the first time since February that the annual increase was below 8%, and the smallest gain since January. Overnight, the S&P 500 and Nasdaq notched up their biggest daily percentage gains in over “two and a half years” on the data. Financial markets have now priced in an 85% likelihood of a smaller, 50 basis point interest rate hike at the conclusion of next month’s Federal Open Market Committee policy meeting, according to CME’s Fedwatch tool.China stocks have had a turbulent few weeks — sliding on outbreaks of Covid-19, the ensuing lockdowns as well as feeble economic data, but also surging sporadically on hopes of an eventual economic reopening.

 

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