Asian stocks rise after US inflation data clears way for rate cut

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Currencies strengthen against dollar as investors position for loosening by Federal Reserve

Asian markets rose on Thursday after US inflation data cleared the way for another Federal Reserve rate cut next week. November inflation in the world’s largest economy came in at 2.7 per cent, higher than the previous month but in line with market expectations, solidifying expectations for a quarter-point rate cut in December.

The inflation numbers play to more continued easing — it’s a not-too-hot, not-too-cold scenario and that’s good for markets.” The Nasdaq 100 closed up 1.9 per cent and the tech-heavy Nasdaq Composite closed above 20,000 points for the first time as US tech stocks gained. “On Japan, Korea and Taiwan, the rise of US big tech is providing a lift in the semiconductor industry,” said Jason Lui, head of Asia-Pacific equities and derivatives strategy at BNP Paribas. The dollar weakened 0.

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