Asian Stock Markets React to U.S. Inflation Data

Asian stocks showed mixed recovery after U.S. inflation data raised concerns about future interest rate cuts. Traders adjusted expectations for the Federal Reserve's policy decisions, impacting global stock and currency markets. The Nikkei 225 rebounded, while other markets in Asia showed varied responses, reflecting complex economic dynamics.

Asian stock markets experienced an uneven recovery as investors responded to a sudden surge in U.S. producer price data, igniting renewed inflation concerns. The unexpected increase limited expectations for the Federal Reserve's potential rate cuts, impacting global financial markets.

MSCI's index of Asia-Pacific shares, excluding Japan, declined after U.S. economic reports revealed a higher-than-anticipated Producer Price Index increase. This development prompted traders to curb expectations of significant interest rate cuts at the Federal Reserve's upcoming meeting.

Meanwhile, the Nikkei 225 index bounced back, nearing a historic high, while Japanese economic data showed positive growth. Currency and commodities markets fluctuated as traders evaluated potential impacts on inflation and monetary policies worldwide.

(With inputs from agencies.)