Asian equity markets posted broad gains on Wednesday, buoyed by a surprise deceleration in US inflation that has accelerated investor expectations for Federal Reserve rate cuts.
The softer-than-expected US price data provided a significant tailwind for risk assets, reinforcing the view that the US central bank may pivot sooner than previously priced in.
4% to 8,823.2, driven by strength in the financial and technology sectors.
The rally was supported by a dual catalyst: the macroeconomic relief from cooling US inflation and de-escalating geopolitical risks in global shipping lanes.
This combination of factors helped lift sentiment across the region, with investors rotating into higher-beta assets amid improved growth outlooks.
In Australia, the benchmark S&P/ASX 200 index rose as much as 0.4% to 8,823.2, driven by strength in the financial and technology sectors.
The broad-based advance suggests that the positive sentiment is not confined to a single sector but is reflecting a wider risk-on mood.