Asian Stocks Rise on US Inflation, Tech Boost

Asian markets closed higher on Friday, buoyed by a softer-than-expected US inflation report, which reignited hopes for another interest rate cut next month. The development, combined with Micron’s stellar earnings, helped calm fears of a tech bubble, lifting Wall Street and sending Asian stocks soaring.

The news couldn’t have come at a better time, as global equities were poised for a positive end to a tough week. US inflation slowed to its lowest level since July, providing a much-needed boost for rate cuts. However, analysts warned that shutdown-related distortions might have skewed the figures.

Micron’s blockbuster earnings, with profits nearly tripling to $5.2 billion, quelled tech sector concerns, sending shockwaves of optimism across markets. The chipmaker’s upbeat outlook for the current quarter further fueled the rally.

In Asia, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Mumbai, Bangkok, and Wellington all closed higher. Tokyo gained over 1%, buoyed by the Bank of Japan’s decision to hike borrowing costs to a three-decade high.

The yen fluctuated against the dollar, retreating to 156.16 before recovering to 155.90. Japanese government bond yields rose on worries about Prime Minister Sanae Takaichi’s budget discipline, while the yen remains under pressure.