Asian markets gain
Most Asian stock rose on Tuesday, while regional currencies held steady, after the United States and China extended their tariff truce to November, easing market nerves ahead of a keenly watched US inflation report later in the day.
Stocks in Malaysia and Philippines gained 0.1 percent and 0.5 percent, respectively. Shares in Taiwan edged 0.1 percent higher.
Equities in Indonesia rose as much as 2.1 percent, with the main stock market index hitting its highest level since late October 2024.
“Indonesia’s rally is being underpinned by optimism after the Bank Indonesia’s recent rate cut, the US tariff clarity, and the milestone EU trade deal,” said Mohit Mirpuri, equity fund manager at SGMC Capital.
European shares rise
European shares advanced on Wednesday, with technology and defence stocks leading gains, as global mood remained buoyant after tame US inflation data cemented expectations of interest rate cuts by the Federal Reserve.
The pan-European STOXX 600 index rose 0.4 percent, as of 0704 GMT, with Germany’s blue-chip DAX up 0.6 percent after dipping in the previous session.
Global stocks rallied and Wall Street closed at record highs as traders priced in a 94 percent chance of a Fed rate cut in September, according to the CME FedWatch tool.
Meanwhile, leaders from Europe and Ukraine are set to speak to US President Donald Trump later in the day ahead of his summit with Russian President Vladimir Putin.
South Korean shares track wall street’s record peak
South Korean shares climbed on Wednesday, tracking Wall Street’s surge to record highs after soft US inflation data reinforced expectations for a September rate cut. The won weakened, while the benchmark bond yield edged higher.
The benchmark KOSPI was up 18.30 points, or 0.57 percent, at 3,208.21, as of 0233 GMT.
Among index heavyweights, chipmaker Samsung Electronics rose nearly 1 percent, while peer SK Hynix gained 2.79 percent. Battery maker LG Energy Solution climbed 0.26 percent.
Shanghai stocks hit over 3-1/2-year high
Mainland China and Hong Kong stocks rose for a third consecutive session on Wednesday, with the Shanghai benchmark hitting a more than 3-1/2-year high, as prospects of a Federal Reserve interest rate cut next month lifted investor sentiment.
At the midday break, the Shanghai Composite index was up 0.56 percent after hitting the highest level since December 13, 2021 in morning trade.
China’s blue-chip CSI300 index climbed 0.92 percent.
In Hong Kong, the Hang Seng Index rose 1.88 percent.
Banks drag Australian shares lower
Australian shares fell on Wednesday from a record close scaled in the previous session, as Commonwealth Bank of Australia led index heavyweight financials lower on concerns about its bottom line.
The S&P/ASX 200 index slipped 0.4 percent to 8,850.10 by 0059 GMT.
The benchmark index rose 0.4 percent to a record close of 8,880.80 on Tuesday, after the Reserve Bank of Australia reduced interest rates by 25 basis points, as widely anticipated, while signalling further policy easing could be on the cards.
Top lender Commonwealth Bank of Australia declined nearly 5 percent on Wednesday, hitting its lowest level since mid-May and pulling the banking sub-index 1.8 percent lower to its weakest point since August 5.
CBA, considered one of the most expensive banks in the world on a price-to-earnings ratio, reported a record annual profit, but analysts said its bottom line was boosted by a lift in trading income which can be volatile.
Indian shares set to open higher
India’s stock benchmarks are likely to open higher, tracking Asian peers after moderate U.S. retail inflation data bolstered the odds of a September rate cut by the Federal Reserve, while easing domestic inflation is also expected to lift sentiment.
Gift Nifty futures were trading at 24,629, as of 7:55 a.m. IST on Wednesday, indicating that the Nifty 50 will open above Tuesday’s close of 24,487.4.
Asian markets rose, with the MSCI Asia ex-Japan index gaining 0.6 percent. Wall Street closed higher, with the S&P 500 and Nasdaq Composite indexes hitting record peaks after U.S. consumer prices increased marginally in July, up 0.2 percent month-on-month.
The in-line print lifted September Fed rate cut odds to 94 percent from 86 percent a day earlier.
Lower U.S. rates typically boost the appeal of emerging market equities, including India, as yields on U.S. Treasuries fall.
Japan’s Nikkei tops 43,000 for first time ever
Japan’s Nikkei share average rose above 43,000 for the first time on Wednesday, with the broader Topix index also marking a fresh all-time high, tracking Wall Street’s overnight gains and extending the rally into a sixth straight session.
The Nikkei gained as much as 1.4 percent by 0140 GMT to touch a record 43,309.62 and extend its winning run to 7.5 percent since August 4.
Monday of this week was a national holiday in Japan.
The broader Topix advanced 1 percent to an unprecedented 3,097.94, also rising for the sixth straight session.
Overnight, the S&P 500 and Nasdaq closed at record highs as a moderate reading of July inflation bolstered bets for a Federal Reserve interest rate cut next month.
Broad gains lift Sri Lankan stocks
Sri Lankan shares closed higher on Tuesday, lifted by broad-based gains led by communications services and real estate stocks.
The CSE All Share index settled up 0.25 percent at 19,972.79, rising for the fourth straight session.
Bogala Graphite Lanka PLC and Radiant Gems International PLC were the top percentage gainers on the CSE All Share index, rising 30.3 percent and 15 percent, respectively.
Trading volume on the CSE All Share index rose to 137.4 million shares from 105.9 million in the previous session.
The equity market’s turnover rose to 7.6 billion Sri Lankan rupees ($25.25 million) from 3.15 billion rupees in the previous session, according to exchange data.
Foreign investors were net sellers, offloading stocks worth 135.6 million rupees, while domestic investors were net buyers, purchasing shares worth 7.54 billion rupees, the data showed.