Asian Markets Open Higher Ahead of US Inflation Data

Asian stock markets mostly strengthened amid anticipation of the latest United States inflation data. South Korea’s Kospi index rose 4%, while the small-cap Kosdaq index gained 0.92%. Japan’s Nikkei 225 index climbed 1.5%, and the Topix index advanced 0.99%. Australia’s benchmark S&P/ASX 200 index bucked the trend, dipping 0.12%. The US producer price index for July, which measures the prices wholesalers pay for raw materials and supplies, is scheduled for release on Thursday at 08:30 ET. This follows a consumer price index report that matched expectations. The CPI for July rose 0.1% month-on-month, in line with forecasts. The report led market participants to reduce their expectations for an interest rate hike in September. José Torres, senior economist at Interactive Brokers, noted that a rate increase is more likely to occur in October or December, after monetary policy officials take time to assess conditions on both sides of their dual mandate.