Asian Stocks Rise on AI Optimism and Lower US Inflation

Asian stock markets mostly rose in early Thursday trading, fueled by growth in the semiconductor and artificial intelligence sectors. South Korea's Kospi surged 3.9% and Japan's Nikkei 225 climbed 1.6%, while Australia's S&P/ASX 200 declined 0.6%.

The rally followed a strong performance on Wall Street, where AI stocks exceeded analyst expectations. Market sentiment was further bolstered by U.S. inflation slowing to 3.4% last month, down from 3.5% in June. This deceleration led 10-year Treasury yields to drop to 4.68%.

These economic indicators have reduced trader expectations that the Federal Reserve System will hike interest rates at its September meeting. In other markets, the U.S. dollar edged up against the Japanese yen, while both Brent and U.S. crude oil prices declined.