Investing.com - Asian Pacific shares are predicted to kick off trading on a high note, mirroring the surge in US stocks fueled by October's lower-than-anticipated Consumer Price Index.
By 11:10 am AEDT (12:10 am GMT) The S&P/ASX 200, Nikkei 225, and KOSPI 200 each saw a rise of 1.4%, 1.8% and 1.7% respectively.
The US stock market experienced a significant uptick after the October CPI showed a slower increase of 3.2%. the Dow Jones Industrial Average gaining 489 points or 1.4%, the S&P 500 jumping 1.9%, and the NASDAQ Composite adding 2.4%.
All sectors experienced growth, with real estate stocks, which are sensitive to interest rate changes, leading to a 5.3% rise. In the commodity markets, Brent crude oil saw a minor decrease of 0.1% to US$82.47 a barrel, while gold increased by 0.8% to US$1,962.97.
In the bond market, the yield on Australian 2 Year government bonds remained steady at 4.34%, while the 10 Year yield decreased to 4.66%. US Treasury notes fell, with the 2 Year yield at 4.83% and the 10 Year yield at 4.45%.
In Asia, Chinese shares closed higher ahead of Wednesday's highly anticipated meeting between President Xi Jinping and US President Joe Biden. Software and real estate stocks led the gains, with energy stocks weighing down the market. Hong Kong shares ended the day lower due to weakness in tech stocks, despite gains in property, finance, and other sectors. Japan's Nikkei Stock Average rose 0.3% ahead of the same meeting.
In Europe, stocks saw a sharp increase in late trading as weaker-than-expected US inflation data reinforced the belief that the Federal Reserve is unlikely to raise interest rates further. The pan-European Stoxx Europe 600 index rose 1.4%, Germany's DAX jumped 1.7%, and France's CAC 40 added 1.5%, buoyed by gains in real estate, mining, tech, and industrial stocks. The FTSE 100 index closed Tuesday up 0.2%, lifted by the mining sector after weaker-than-expected US consumer price inflation.