Asian stock markets are predominantly in the green on Wednesday, buoyed by positive cues from Wall Street and a drop in Australia’s Consumer Price Index (CPI) to a three-month low. The benchmark S&P/ASX 200 index is up 0.41%, driven by gains in gold miners and technology stocks, while Australian shares have shown resilience following a mixed performance the previous day. Notably, Fisher & Paykel Healthcare shares surged nearly 8% after reporting higher revenue and profit for the first half of 2024.

The market’s optimism stems from the slowing inflation rate, which fell to 4.9% year-over-year, below expectations and marking the first annual decline since July. This development may influence the Reserve Bank of Australia’s monetary policy, potentially easing interest rate pressures. Additionally, the construction sector saw a significant quarterly increase of 13%, indicating robust economic activity.

For market professionals, the key takeaway is the potential for a shift in monetary policy as inflation moderates, which could enhance risk appetite and support further gains in equities, particularly in sectors sensitive to interest rates.

Source: nasdaq.com