Asian markets rise following record American market data

• Markets in Asia rose after record American market data.
• Data on inflation in the U.S. improved expectations for lower interest rates.
• Hong Kong and Japanese markets showed significant growth.

AP — Markets in Asia rose in the middle after the American stock market set records on the back of improved data on inflation in the U.S. The Nikkei 225 index in Tokyo reached a record, adding to the previous increase. Markets in Hong Kong, Singapore, and Malaysia also rose by more than 1%.

The rise in stocks is partly attributed to easing through the prolonged ceasefire in the trade war between the U.S. and China, as well as expectations that the Federal Reserve will lower interest rates. This could potentially lead to a substantial increase in the consumer price index in July.

In China and the U.S., negotiations were extended for 90 days to continue the pause in the trade talks, allowing for additional negotiations on the trade agreement. Although uncertainty remains regarding the results of the negotiations, the ceasefire has eased pressure on companies and countries in Asia that rely on supplies from China.

The Hang Seng index in Hong Kong rose by 1.9% to 25,439.91, while the Shanghai Composite index added 0.6% to 3,686.34. In Japan, easing from the previous policy was confirmed by the Trump administration, which stated that exports from Japan are subject to only 15% tariffs, encouraging active purchases of stocks of companies related to computer chips.

Additionally, the S&P 500 index in the U.S. rose by 1.1% to 6,445.76, and the Nasdaq increased by 1.4% to a record 21,681.90. This growth was driven by positive data on inflation, which raised hopes for a potential reduction in interest rates at the upcoming Federal Reserve meeting.

In line with the latest report, prices for consumer goods in the U.S. rose by 2.7% in July compared to the previous year, which is lower than economists' expectations. Lower interest rates may stimulate investments and ease financing for households and businesses.

Despite the growth in the stock markets, critics note that the U.S. stock market appears expensive after significant growth since April, which puts pressure on companies to ensure stable profit growth.

Meanwhile, the price of crude oil rose by 4 cents to $63.21 per barrel. The U.S. dollar also rose to 147.94 Japanese yen.

Tags: Economy