Asian stocks climb after softer US CPI, South Korea’s Kospi jumps over 6%
Soft US CPI eased Fed hike expectations, lifting Asian equities and supporting a weaker USD and steadier Treasuries. However, the dominant market shock is geopolitical: Trump's renewed strike threat and Iran's disruption of Hormuz shipping pushed Brent above $86 after a sharp three-day surge, raising near-term energy risk premia and complicating the inflation outlook. Gold remains elevated near $4,050 on haven demand.
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Asian equities rose as softer US inflation data eased expectations for further Federal Reserve rate hikes and the AI-driven trade regained momentum. South Korea’s Kospi surged more than 6% in a single session. Oil extended gains for a third session after US President Donald Trump threatened additional strikes on Iran, lifting Brent above $86 a barrel after an 11% rise over the prior two sessions. Gold held near $4,050 an ounce as demand for safe havens persisted.