Asian markets rally in spite of U.S. inflation surge, greenback on the defensive

Asian-Indexes

On Thursday, Asian market gained following Wall Street’s move to ignore solid U.S. inflation data, considered as an unorthodox move that also experienced the dollar stay in its two week loss despite of the increase in Treasury yields due to expectations of a faster pace in U.S. interest rate hikes.

Asia Pacific shares out of Japan .MIAPJ0000PUS climbed 0.4 percent. In news from the down under.

Australian stocks rose 0.8 percent, KOSPI of Korea .KS11 gained 1.1 percent while the Nikkei .N225 of Japan rose 1.1 percent, marking its three successive days of losses that moved it to a four month low the day before.

Wall Street spiked on Wednesday, with the S&P 500 .SPX gaining 1.34 percent and Dow .DJI gaining 1 percent since investors brushed aside the the stronger than anticipated inflation daya and the surging shares of Amazon.com (AMZN.O), Apple (APPL.O) and Facebook.

U.S. consumer prices surpassed expectations in January due to Americans paying more for gasoline, rental and healthcare, further fueling inflation concerns and the possibility of a hike in Federal Reserve interest rates.

The dollar index .DXY, versus a collection of other major currencies, was a little lower at 88.980 following its overnight losses of over 0.6 percent in spite of the robust inflations number.

The greenback stretched overnight losses versus the Japanese Yen to reach a 15 month low of 106.420 JPY=, dropping over 2 percent so far this week which caused the Nikkei to perform less against its international peers.

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