Futures in Tokyo, Hong Kong and Sydney all pointed to further gains as regional benchmarks showed signs of cooling inflation, Bloomberg reported. Easing price pressures boosted market confidence that the Federal Reserve will lower borrowing costs, while the labor market also showed signs of slowing.
The president of the Atlanta Federal Reserve said investors were celebrating lower inflation data not because of a slowdown in the U.S. economy but because of expectations that interest rate cuts starting in September would improve liquidity conditions.
In New Zealand, economists and investors were uncertain whether the central bank would cut its key interest rate by 25 basis points to 5.25% at its meeting on Wednesday.
