Asian Markets Rally Amid Tech Surge and Inflation Concerns

Asian shares surged on Thursday, following a tech-driven rally in the U.S., as core inflation data dashed hopes for a significant Fed rate cut. Investors await the European Central Bank's policy decision, with a rate cut almost certain. The dollar held gains, impacting global exchange and bond markets.

Asian shares surged on Thursday, tracking a tech-fueled rally from Wall Street. Investors were buoyed by the latest U.S. core inflation data, which tempered expectations for a significant rate cut by the Federal Reserve next week.

Anticipation now builds for the European Central Bank's policy decision later today, where a rate cut seems inevitable. MSCI's Asia-Pacific index outside Japan rose by 1%, and the Nikkei soared 3%, benefiting from a weaker yen.

U.S. core consumer price index (CPI) data showed a 0.28% increase in August, prompting markets to lower the chances of a major rate cut. This dampened Wall Street, but tech stocks rebounded sharply. Regional tech shares in Asia followed suit.

(With inputs from agencies.)