Asian stock markets rallied on Thursday, buoyed by unexpected dips in U.S. core inflation and robust bank earnings in Wall Street. In a surprise move, South Korea’s central bank maintained its benchmark interest rate at 3%, against expectations of a cut by analysts surveyed by Reuters. This decision propelled South Korea’s Kospi and Kosdaq indices up by 1.16% and 1.65% respectively.
Following substantial gains in the U.S. markets overnight, Asian indices mirrored the upbeat sentiment. As of 9:37 BKK time on Thursday, Japan’s Nikkei 225 added 0.35%. Hong Kong’s Hang Seng opened strongly with a 1.56% increase and China’s Shanghai Composite moved up 0.78%. Meanwhile, the Australian S&P/ASX 200 climbed 1.33%. Korea’s Kospi Index gained 1.21%.
In the U.S., major indices posted impressive gains on their best trading day since November 6. The S&P 500 rose 1.83%, closely followed by the tech-centric Nasdaq Composite, which surged by 2.45%, while the Dow Jones saw a rise by 1.65%.
On Thursday, the Bank of Korea chose to hold its policy rate steady at 3%, defying predictions of a 25 basis point reduction. This decision sent the Kospi surging as investors embraced the news. The Kosdaq also saw a notable rise, gaining 1.65% in the wake of the announcement.
Oil prices experienced a more than 2% uptick on Wednesday, driven by significant reductions in U.S. crude inventories alongside supply concerns due to new U.S. sanctions targeting Russia.
Despite a ceasefire deal in Gaza moderating gains, Brent crude and West Texas Intermediate crude (WTI) reached their highest levels since 2024, with Brent settling 2.64% higher at $82.03 per barrel and WTI rising 3.28% to $80.04.
Meanwhile, Gold extended its gains on Wednesday as the dollar retreated following the release of softer-than-expected U.S. core inflation figures. The spot price of gold rose 0.6% to $2,693.63 per ounce, while U.S. gold futures settled 1.3% higher at $2,717.80, as investors speculated that the Federal Reserve’s easing cycle might persist.
