Asian stocks extend gains on US inflation data

Asian stocks continued the positive trend on Thursday, with MSCI’s broadest index of Asia-Pacific shares outside Japan rising by 1.2 per cent.

The market optimism was driven by a favourable US inflation report, which indicated that the consumer price index increased as expected by 2.9 per cent annually in December.

The yen strengthened slightly to 156.22 per dollar, while the euro remained stable at $1.0285, and the pound dipped 0.24 per cent to $1.2215.

Oil prices saw a modest increase following a larger-than-expected drop in US crude oil inventories, raising concerns about potential supply disruptions due to new US sanctions on Russian energy trade.

Investors are closely monitoring the situation in the Middle East as Israel escalated attacks on Gaza shortly after a ceasefire and hostage release agreement was reached to end a conflict that began 15 months ago.

Attribution: Amwal Al Ghad English, Reuters

Subediting: M. S. Salama