- Asian shares rose in response to a surprise bounce in US stocks, which recovered from losses caused by a high inflation reading.
- An index of regional equities was set to end a five-day losing trend, while benchmarks in Hong Kong, Japan, and Australia rose. The S&P 500 outperformed forecasts, rising 2.6% after consumer pricing data confirmed the Federal Reserve's intention to raise interest rates again in November.
- The yen stabilised in Asia after plummeting to its lowest level in more than 30 years following the US CPI, only to reverse the move in a jerky trade that fuelled speculation about imminent intervention. Treasury yields fluctuated on Thursday as the policy-sensitive two-year yield jumped 17 basis points.
- The spike on Wall Street highlights the difficulty traders confront in unpredictable markets, with higher interest rates adding pressure on an already ailing global economy. One possible explanation for the rally was the belief that the yearlong selloff in equities had struck a bottom. Others included short covering, less-than-impressive earnings releases, and solid positioning with well-provisioned hedges.
