Asian Shares Mostly Higher As US Inflation Cools

(RTTNews) - Asian stocks rose broadly on Thursday as soft U.S. inflation data helped keep the door open for a Federal Reserve rate cut in September.

Chinese and Japanese markets ended lower after the European threatened to impose provisional duties on imports of Chinese electric vehicles in July.

The dollar index regained momentum, keeping gold prices under pressure. Oil prices declined as data showed a surprise U.S. inventory jump and the IEA forecast a surplus petroleum production of up to eight million barrels per day by 2030.

China's Shanghai Composite index dropped 0.28 percent to 3,028.92 amid increased U.S. scrutiny of imports from China and cooling trade relations between the two countries.

Hong Kong's Hang Seng index jumped 0.97 percent to 18,112.63 on optimism about AI's potential to positively impact businesses.

Japanese markets ended lower as investors braced for Friday's BOJ policy meeting where the central bank may consider trimming its bond buying, taking a first key step to reducing its almost $5 trillion balance sheet.

The Nikkei average dipped 0.40 percent to 38,720.47. The broader Topix index settled 0.89 percent lower at 2,731.78, giving up early gains. Automakers Honda Motor, Nissan and Toyota fell between 1.4 percent and 2.5 percent as Europe moved to hike tariffs on electric vehicles made in China and Beijing hinted at countermeasures.

Chip-testing equipment maker Advantest advanced 1.5 percent, tracking overnight gains in the U.S. semiconductor index. Tokyo Electron shed 1.7 percent and Screen Holdings lost 2.3 percent.

Seoul stocks gained ground, with the Kospi average rising 0.98 percent to 2,754.89 - extending gains for a third straight session.

Tech stocks surged, with heavyweight Samsung Electronics rallying 2.8 percent and peer SK Hynix rising 3.3 percent.

Australian markets ended higher, paring some early gains as May employment figures topped forecasts and raised concerns about the RBA's rate path.

The benchmark S&P ASX 200 rose 0.44 percent to 7,749.70, snapping a two-day losing streak led by tech stocks and real estate investment trusts. The broader All Ordinaries index finished up 0.49 percent at 8,002.50.

Market operator ASX plunged 8 percent after forecasting a rise on its technology spend. Bookseller Booktopia had its stock put into a trading halt pending a significant announcement related to outcomes from a strategic review.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index rallied 1.11 percent to 11,872.64 on optimism over falling inflation in the United States.

U.S. stocks ended mostly higher overnight as signs of falling inflation fuelled bets the Fed will lower interest rates in coming months.

Data showed U.S. consumer prices rose 3.3 percent in the year to the end of May, down 0.1 percentage points from the month before.

Core prices grew at their slowest annual pace in over three years despite rents continuing to weigh on household budgets.

Meanwhile, after leaving rates on hold for the seventh consecutive meeting, Fed Chair Jerome Powell acknowledged that inflation has eased substantially in recent months but remains too high.

The latest projections showed officials expect only one interest rate cut this year compared to the three forecast in March.

The accompanying dot plot indicated that more participants expect to cut twice than once, but no one expects to cut more than twice, while four don't expect to cut at all this year.

The tech-heavy Nasdaq Composite surged 1.5 percent and the S&P 500 rose 0.9 percent to reach new record closing highs while the Dow ended marginally lower, giving up early gains.