Asian markets rally as Seoul rebounds and US inflation meets forecasts

· Business KORJPNUSACHN

Seoul's Kospi surged as much as 3.6 percent on Thursday, extending a roughly 20 percent rebound from its August 6 intra-day trough and narrowing the damage from a 40 percent slump since June. Gains were driven by SK Hynix and Samsung after Tokyo added more than one percent and Shanghai and Shenzhen edged higher on a 20 percent Lenovo jump following quarterly earnings.

The advance followed news that U.S. consumer prices rose 0.1 percent in July, meeting forecasts and holding inflation above the Federal Reserve's two-percent target for a 65th consecutive month. Market pricing for a September rate hike fell to 34 percent, down from 55 percent a week earlier, while the 10-year Treasury yield retreated to 4.678 percent.

Elsewhere, the MSCI All Country World Index neared its intraday record, gold slipped to $4,397.88 an ounce, and the People's Bank of China injected 349 billion yuan into the banking system.

Story development

  1. Asian markets rally as Seoul rebounds and US inflation meets forecasts
  2. Asian markets rally as weak US jobs data dims Fed rate hike expectations

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