Asian markets experienced a significant surge on Wednesday, mirroring gains from Wall Street, fueled by growing optimism surrounding a potential Federal Reserve rate cut. This positive sentiment comes alongside the release of August inflation data from China. The CSI 300 index in mainland China saw a 0.46% increase, while Hong Kong's Hang Seng Index climbed 1.35%, reaching its highest point since late 2021. The Hang Seng Tech index also performed strongly, rising by 1.82%.
China's August inflation figures revealed a 0.4% year-over-year decline in consumer prices, slightly missing analysts' predictions of a 0.2% drop. Producer prices also fell, decreasing by 2.9% year-over-year, aligning with expectations and marking an improvement from July's 3.6% decrease. Alibaba Group's Hong Kong-listed shares experienced a 2.1% increase, reaching a near four-year high following a substantial funding round for a Chinese robotics startup, X Square Robot, led by Alibaba Cloud.
South Korea's Kospi index achieved a record high, soaring 1.75% to reach 3,317.77, marking its seventh consecutive session of gains. While the country's seasonally adjusted unemployment rate saw a modest increase to 2.6% in August, compared to 2.5% in July, this did not dampen market enthusiasm. The Kosdaq index also saw a positive trend, climbing 0.53%. Japan's Nikkei 225 and Topix indices also rose, gaining 0.72% and 0.53% respectively. Australia's S&P/ASX 200 added 0.35%, India's Nifty 50 gained 0.56%, and the Sensex increased by 0.54%.
The launch of new Apple products – iPhones, watches, and AirPods – positively impacted Asian tech companies within Apple's supply chain. Taiwan's Foxconn and Samsung Electronics saw increases of 1.2% and 1.4% respectively. Despite this, however, Apple's own share price closed 1.48% lower. Indonesia's Jakarta Composite Index rebounded from a three-session decline, rising 1.06% after a previous slump following a cabinet reshuffle. The Indonesian Rupiah also strengthened by 0.15%. Singapore's Straits Times Index also hit a new record high, surpassing 4,341.32.
US equity futures edged upward during Asian trading hours as investors anticipated the release of the latest producer price index in the US and the upcoming consumer price index data. The positive momentum in Asian markets reflects a broader global trend of investor confidence, fueled by anticipation of potential Federal Reserve intervention and the ongoing assessment of economic indicators.
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Originally published at: https://www.cnbc.com/2025/09/10/asia-markets-china-inflation-data-south-korea-unemployment.html
