Asia Rebounds as Global Markets Weather U.S. Inflation Jolt

 

Friday’s global market scene reflected cautious resilience. Despite a surge in U.S. producer inflation that dimmed expectations of sweeping Federal Reserve rate cuts, investors held onto confidence—perhaps betting that economic fundamentals and geopolitical developments could offer stability.
In Asia, reactions were mixed. The MSCI Asia-Pacific ex-Japan index slipped slightly, while Japan’s Nikkei 225 roared back up 1.6%, riding the wave of unexpectedly robust Q2 GDP growth. That number injected a fresh dose of economic confidence into the region. Meanwhile, markets like Australia and China’s CSI 300 continued to tread upward modestly, with gains of roughly 0.7% and 0.8%, respectively. Conversely, Hong Kong’s Hang Seng dipped roughly 1.1%, reflecting lingering uncertainties in its economy.
Wall Street futures edged higher by around 0.2%, buoyed by easing in U.S. Treasury yields, lending cautious support to global sentiment. In commodities, Brent crude fell a bit, while gold inched upward, helped by a softer dollar that made it more appealing to global buyers. Meanwhile, Bitcoin flirted with a record high before pulling back—a reminder that markets are still navigating between optimism and volatility.
Traders seem to be balancing two narratives: on one hand, inflation is rising faster than expected; on the other, there’s hope that growth—and potentially even geopolitical thawing—could steer things back toward calm. With a high-stakes U.S.–Russia summit on the horizon, many are holding out for signs of diplomatic de-escalation that could steer markets in a more positive direction.