Asian Stocks Advance After US Markets End Higher Following Inflation Print

Asian equities advanced on Thursday taking cues from US markets after traders digested the unexpected uptick in core consumer prices in America and looked ahead for the Federal Reserve's rate decision next week.

The Japanese benchmark Nikkei 225 was up 3.48% and South Korea's Kospi was trading 1.18% higher as of 6:55 a.m. Hong Kong's Hang Seng was down 0.73%, while Taiwan's TAIEX advanced 2.09%.

The yen fell 0.3% to 142.79 per dollar. The Bloomberg dollar index was up 0.1% at 101.81.

The US core consumer prices saw an unexpected uptick in August, primarily driven by a significant increase in housing costs. The core consumer price index, which excludes food and energy costs, rose 0.3% from July and 3.2% from the previous year, according to data released by the US Bureau of Labor Statistics on Wednesday.

The overall inflation rate also increased by 0.2% from the previous month and 2.5% from August last year, partly offset by lower gasoline prices.

Following the data release, the Dow Jones Industrial Average gained 124.75 points to end 0.31% higher at 40,861.71. The S&P 500 index closed up 1.1% and the Nasdaq Composite rose 2.2%.

Economists tracked by Bloomberg had anticipated a 0.2% increase in both the consumer price index and the core gauge for August. The latest inflation reading may not change the Fed's plan to cut interest rates next week, but it could limit the scope of the reduction.

Meanwhile, Bank of Japan policy board member Naoki Tamura is scheduled to speak on Thursday. The previous day, fellow board member Junko Nakagawa stated that the central bank will keep adjusting its policy as long as the economy meets expectations, a remark that led to a rise in the yen, Bloomberg reported.

• US Dollar Index at 101.81.

• US 10-year bond yield at 3.67%.

• Brent crude up 0.35% at $70.86 per barrel.

• Bitcoin up 0.29% at $57,714.21.

• Gold up 0.11% at $2,514.42 an ounce.