Asian Stocks Gain As Firm Inflation Keeps Fed On Track For Rate Cuts

Stocks in the Asia-Pacific region advanced in early trade on Thursday as the latest firm inflation print in the US calls for rates easing by the Federal Reserve. Bitcoin briefly topped the $93,000 mark.

Equity benchmarks in Japan and Australia led to gains during the session opening. The Nikkei was 197 points, or 0.55%, higher at 38,948, while the S&P ASX 200 was up 39 points, or 0.47%, at 8,231 as of 5:35 a.m.

The so-called core consumer price index in the US— which excludes food and energy costs—increased 0.3% for a third month and 3.3% from a year ago. The fact that this underlying US inflation was steady in October highlighted the continued pressures that Fed officials face in anchoring the price targets.

The overall CPI rose 0.2% for a fourth month and 2.6% from a year before, marking the first acceleration on an annual basis since March.

Following the inflation print, Wall Street rose but ended mixed, while Treasury yields and the dollar fell. According to Bloomberg News, traders marked up the odds of a December rate cut to around 70% from about 60% prior to the release.

The S&P 500 and Dow Jones Industrial Average rose 0.02% and 0.11%, respectively, while the tech-heavy Nasdaq Composite declined 0.26%.

Meanwhile, Republicans swept the White House and both houses of Congress, giving Donald Trump unified control to implement his tariff, tax, and border plans for the economy. Bitcoin briefly topped $93,000, while the dollar was close to a two-year high. 

Australian unemployment, South Korean money supply and Thai consumer confidence will be the key data sets to focus in Asia region on Thurday. The US PPI data is also due on Thursday which is expected to rise compared to the same period last year.

Stocks in India will be in focus on Thursday after the key gauge—NSE Nifty 50—entered the so-called 'correction zone' on pressures from record exit by foreign investors.

On the commodities front, crude oil prices were slightly lower on a potential de-escalation of tensions in the West Asia. Brent crude was trading 0.54% higher at $72.28 a barrel as of 6:00 a.m. IST. West Texas Intermediate was down 0.48% at $68.10.