This content was published on
July 15, 2026 - 00:06
4 minutes
(Bloomberg) — Asian equities were set for a second day of gains after an unexpectedly sharp slowdown in US inflation fueled a Wall Street rally and eased concerns about imminent Federal Reserve interest-rate hikes. Oil extended gains.Futures for benchmarks in Japan, South Korea, Australia and Hong Kong all pointed to higher opens Wednesday. US contracts were steady after the S&P 500 extended this month’s advance. Early in the earnings season, major banks posted solid results. A rally in chipmakers helped lift the Nasdaq 100 by 1.1%, even as International Business Machines Corp. sank 25% on a sales miss.West Texas Intermediate crude edged higher in early Asia trading after the US said it resumed the naval blockade against vessels transiting to and from Iranian ports and coastal areas. American forces also launched a fresh wave of attacks on Iran.Oil rose to the highest in a month Tuesday as traders digested US President Donald Trump’s U-turn on cargo payments in the Strait of Hormuz and more vessels in the waterway came under Iranian fire.Meanwhile, US inflation data Tuesday brought some relief to concern about a resurgence in oil prices. Treasuries gained, sending yields tumbling as traders unwound bets that the Fed could begin raising interest rates as soon as this month. A gauge of dollar strength had its worst day in almost two weeks.Consumer prices dropped in June for the first time in six years and a key gauge of underlying inflation was little changed. Fed officials will likely welcome the data ahead of their upcoming meeting even as hostilities in the Persian Gulf risk prolonging the fallout from the conflict.“Softer than expected CPI is a big relief,” said Tiffany Wilding at Pacific Investment Management Co. While the “report will not eliminate discussion of further tightening entirely, it should effectively remove a July rate hike from consideration.”In testimony before US lawmakers, Fed Chairman Kevin Warsh said central bank officials have no tolerance for high inflation, reiterating a vow to tame price growth.The CPI likely lowers pressure on the Fed to hike soon, but hostilities in Iran mean the prospect of hikes is far from over, noted Kay Haigh at Goldman Sachs Asset Management. While a path remains for rates to stay unchanged this year, the re-escalation of the conflict has narrowed it, Haigh said.The “report provides breathing room, not an all-clear,” noted Bret Kenwell at eToro. “While inflation has cooled, it has not disappeared.”Corporate Highlights:The premium for SK Hynix Inc. American depositary receipts over their Korean-listed shares soared to more than 50%, just three days after making their US trading debut. JPMorgan Chase & Co. saw its highest quarterly profit ever as stock traders blew past estimates and a long-held Visa Inc. stake paid off to the tune of $4.6 billion. Goldman Sachs Group Inc. trounced its own Wall Street stock-trading records, posting $7.42 billion for a quarter that saw indexes rip higher and market volatility. Bank of America Corp.’s stock traders notched a record during the second quarter while its investment bankers capitalized on a dealmaking resurgence. Wells Fargo & Co. reported earnings that beat estimates on higher fees from wealth management and investment banking. A slew of Citigroup Inc.’s key business lines surpassed expectations, although the bank’s record haul in stock trading fell short of the growth posted by rivals. What Bloomberg Strategists say…“CPI came in softer than forecasted, taking the attention of the two main macro pressures that had dominated the tape over the last week — higher oil prices and a rising probability of a July Fed hike — and shifting the focus back to the micro in individual earnings.”—Michael Ball, Macro Strategist, Markets Live. For the full analysis, click here.Some of the main moves in markets:StocksHang Seng futures rose 0.2% as of 7:01 a.m. Tokyo time S&P/ASX 200 futures rose 0.6% Nikkei 225 future rose 0.7% CurrenciesThe euro was little changed at $1.1423 The Japanese yen was little changed at 162.20 per dollar The offshore yuan was little changed at 6.7723 per dollar CryptocurrenciesBitcoin was little changed at $64,589.98 Ether was little changed at $1,876.48 CommoditiesSpot gold was little changed West Texas Intermediate crude rose 0.7% to $79.93 a barrel This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
