Asian markets rose on Wednesday and the U.S. dollar held steady following surprisingly mild U.S. inflation data, which reinforced the likelihood of an interest rate cut by the Federal Reserve next month.
Japan’s Nikkei surged past the 43,000 mark reaching an all-time high, while the broader Topix also hit fresh highs, extending gains into a sixth consecutive session . Investor optimism was buoyed by the extension of the U.S. China tariff truce , alongside upbeat manufacturing confidence in Japan backed by slowing wholesale inflation .
On Wall Street, the S&P 500 and Nasdaq closed at record highs, reinforcing global bullish sentiment . Meanwhile, the U.S. federal Consumer Price Index came in slightly below expectations at a 2.7% annual rise in July, down from the projected 2.8% .
Investor confidence surged the MSCI All Country World Index hit a new record high of 948.54, and the dollar index edged down . Markets are now pricing in a 94% probability of a Fed rate cut in September .
