Asia stocks surge as cooling inflation feeds hopes Fed will ease up - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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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.

Australia’s S&P/ASX 200 index climbed 2.43% and Japan’s Nikkei rose 3%.

“It’s something the market had been waiting for a long time,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital. “There was a lot of money sitting on the sidelines.” After four consecutive 75 basis-point interest rate hikes to tame decades-high inflation, the case is now building for the Fed to moderate its aggressive stance, said Rodrigo Catril, senior currency strategist at National Australia Bank in Sydney.

In the currency market, the US dollar index slumped more than 2% overnight to 108.100, the most in over a decade. It was last at 108.230.

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Business Maverick: Asian stocks fall, crypto bounces before CPI: markets wrapAsian stocks weakened after US shares fell and cryptocurrencies arrested a sharp decline that sapped risk appetite ahead of crucial inflation data due later on Thursday.
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