CANBERA (dpa-AFX) - Asian stocks ended mostly higher on Wednesday as in-line U.S. inflation reading bolstered speculation the Federal Reserve will cut interest rates by 25 basis points in September, bringing forward its easing forecast amid fears of a weakening labor market.
U.S. Treasury Secretary Scott Bessent wants the Fed to keep the door open to a larger, 50 basis-point rate cut next month following recent weak job growth revisions.
Chinese markets eked out modest gains as regulatory scrutiny of Nvidia chips spurred some optimism around the potential use of local alternatives.
The benchmark Shanghai Composite index rose 0.48 percent to 3,683.46, with the upside capped by heightened trade tensions with Canada. China said it will implement more levies on Canadian rapeseed after an anti-dumping probe.
Hong Kong's Hang Seng index jumped 2.58 percent to 25,613.67. Tencent Music Entertainment Group soared 15.6 percent after its second-quarter revenue and profit beat estimates on robust subscriber growth in its online music services.
Japanese markets rose sharply to hit a fresh record high, extending the rally to a sixth straight session on tariff optimism and Fed rate-cut hopes.
The Nikkei average hit an intraday high of 43,451.46 before closing up 1.30 percent at a record high level of 43,274.67. The broader Topix index settled 0.83 percent higher at 3,091.91.
Among the prominent gainers, Advantest, Renesas Electronics, Tokyo Electric Power and Yokohama Rubber surged 5-8 percent. Athletic apparel company Asics soared 18 percent after raising its full-year forecast.
Seoul stocks rallied, led by gains in the tech sector. The Kospi average climbed 1.08 percent to 3,224.37, snapping a three-day losing streak on hopes for a U.S. rate cut. Samsung Electronics rose 1.1 percent and SK Hynix jumped 3.4 percent.
LG Display soared 22.5 percent on news of its victory in a trade secret infringement lawsuit against Chinese BOE.
Australian markets fell notably as focus shifted to earnings. The benchmark S&P/ASX 200 dropped 0.60 percent to 8,827.10 while the broader All Ordinaries index closed 0.52 percent lower at 9,103.10.
Top power producer AGL Energy plummeted 13.1 percent after it reported a 21 percent drop in annual underlying profit.
Commonwealth Bank of Australia slumped 5.4 percent despite the country's biggest lender posting strong earnings.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally higher at 12,766.54, paring early gains.
Gold edged higher in Asian trade as the dollar weakened on rate cut expectations. Oil held a decline after the International Energy Agency said that global oil markets are on track for a record surplus next year.
Overnight, U.S. stocks rose sharply as in-line inflation data reinforced expectations that the Federal Reserve will cut interest rates soon.
Annual consumer price inflation held steady from the previous month at 2.7 percent in July, while economists had expected the pace of growth to tick up to 2.8 percent.
Core inflation, which excludes volatile food and energy prices, came in a tad higher than anticipated at 3.1 percent.
The tech-heavy Nasdaq Composite surged 1.4 percent and the S&P 500 rallied 1.1 percent to reach new record closing highs while the Dow climbed 1.1 percent.
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