Asian stock markets surged on Thursday, mirroring Wall Street’s record highs after a softer-than-expected US inflation report fuelled expectations of interest rate cuts from the Federal Reserve, Reuters reported.
MSCI’s broadest Asia-Pacific index outside Japan jumped 1.5 per cent, with Hong Kong’s Hang Seng and Australia’s benchmark each surging over 1.6 per cent. Japan’s Nikkei also gained over one per cent.
The US dollar weakened against major currencies, including the euro, sterling, and notably, the Japanese yen. The dollar index sank to a five-week low.
US Treasury yields fell, further pressuring the dollar. The 10-year yield hit a six-week low 7.705 per cent in Tokyo trading.
Gold prices climbed towards record highs at $2,397.32, while crude oil extended gains 0.47 per cent after a strong rebound the previous day.