- Stocks in Asia broadly climbed on cautious optimism the Federal Reserve may pause rate hikes following the US inflation report that was in line with estimates. The dollar slipped.
- Japan’s Nikkei 225 outperformed the region and equities in South Korea and Australia gained as a benchmark index for the region snapped a two-day loss. US stock futures also rose. Japanese shares received an extra boost after Economic Revitalization Minister Yoshitaka Shindo said the government will use all policies for economic management and highlighted the need for strong economic measures.
- The greenback weakened against all of its Group-of-10 peers and Treasury yields ticked lower. The euro ticked higher against the dollar as traders awaited the rate decision by the European Central Bank later Thursday. Elsewhere, demand for Japanese 20-year bonds at auction was the strongest since May 2020, soothing concerns about a potential normalizing of monetary policy by the Bank of Japan.
- The US’s core consumer price index, which excludes food and energy costs, increased 4.3% from a year ago - in line with estimates and marking the smallest advance in nearly two years. Also due later Thursday are US retail sales and producer price data.
