Asian Markets Surge Amid Inflation Hopes and Political Turmoil

Asian shares rose amid soft U.S. producer prices data and New Zealand's interest rate cut. The Japanese yen strengthened slightly following news of PM Fumio Kishida's resignation, leading to mixed performance in Asian stock indices. U.S. equity futures were steady, and commodities saw gains.

Asian shares saw a rise and the dollar nursed losses on Wednesday following U.S. producer prices data that stirred hopes for benign consumer price inflation, subsequently lowering bond yields.

The kiwi dollar fell 0.7% after the Reserve Bank of New Zealand cut interest rates to 5.25% and forecasted more easing. Meanwhile, Japanese Prime Minister Fumio Kishida announced he would step down as ruling party leader in September, amid rising prices and political scandals.

The yen strengthened slightly to 146.53 per dollar, and Japan's Nikkei remained flat after Kishida's resignation was disclosed. Nonetheless, the Nikkei stayed above last week's lows. MSCI's Asia-Pacific index outside Japan grew by 0.5%, while Hong Kong's Hang Seng and mainland blue chips experienced modest declines.

(With inputs from agencies.)