This content was published on
July 15, 2026 - 04:20
6 minutes
(Bloomberg) — Asian shares rose as traders trimmed bets on Federal Reserve interest-rate hikes following cooler-than-expected US inflation data, while the artificial intelligence trade gathered fresh momentum. Oil rose.MSCI’s Asia Pacific equities gauge climbed 1.7%, with technology shares among the biggest gainers. South Korea’s Kospi jumped almost 7%, regaining the top spot as the world’s best-performing major stock benchmark this year. SK Hynix Inc. shares rose 11% after its American depositary receipts surged 27%.Shares in mainland China were steady after retail sales unexpectedly grew 1% after a 0.6% drop in May. Industrial production beat forecasts and rose 5.3%. The surveyed urban jobless rate eased to 5% from 5.1% in May. Even so, the country’s GDP growth weakened.Treasuries steadied after a rally sent yields sharply lower Tuesday as traders unwound bets that the Fed would begin raising rates as soon as this month. The yield on the Treasury 10-year note slipped one basis point to 4.58%. Sovereign debt also gained in Japan and Australia.A sense of caution, however, prevailed as oil rose for a third day after President Donald Trump threatened further strikes on Iran. Earlier, the US resumed its blockade on the Islamic Republic’s shipping through the Strait of Hormuz. Global benchmark Brent advanced 1.1% after surging 11% in the previous two sessions.Tuesday’s weak US inflation numbers and a strong start to the earnings season have revived the AI trade, boosting technology stocks after a recent bout of volatility. While the data gives the Fed more room to keep rates on hold, escalating tensions in the Middle East continue to cloud the inflation outlook by threatening higher energy prices.“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.”What Bloomberg’s Strategists Say…“Fuel futures are far more elevated than crude peers, suggesting investors are complacent in pricing for this year’s energy supply shocks to rapidly fade, especially given the recent escalation in the US-Iran conflict. That’s a dynamic that will haunt equities, credit and bonds, given investors have been so willing to bet that the impact of wars in the Middle East and Europe would prove transitory.”— Garfield Reynolds, MLIV Asia Team Leader. Click here for the full analysis.Attention in Asia will once again be on the chips sector after a volatile session on Tuesday, when the Kospi swung between gains of as much as 2.5% and losses as steep as 5.3%.As sentiment improved, SK Hynix’s US-listed shares soared, pushing the premium of its ADRs over the Seoul-listed stock above 50% just three days after their trading debut.An Asian benchmark of semiconductor shares added 2.5% on Wednesday.Volatility “has died down and we’re seeing some repurchasing in the chip sector,” said Kazuhiro Sasaki, head of research at Phillip Securities Japan. “But rather than a full-blown return to tech, we’re seeing sector rotation continue — banks are attractive, especially after strong earnings in the US.”In other corners of the market, the dollar weakened against all of its Group-of-10 peers. Gold, which typically benefits when rates aren’t increased, edged up to trade around $4,060 an ounce. Silver and platinum also climbed.Earlier, the S&P 500 rose with after major banks posted solid results, while a rally in chipmakers helped lift the Nasdaq 100. International Business Machines Corp. sank 25% on a sales miss.In oil, traders are paying close attention to refined products. Fuel markets in the US and Europe are flashing record tightness as tensions flare up in the Middle East, threatening more pain for consumers already strained with high prices at the pump.Also, Russia is struggling to deliver all of the crude it’s being forced to ship overseas in the face of escalating Ukrainian drone strikes on its refineries.Elsewhere, 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.Warsh said the June inflation reading was better than expected, but has a long way to go.“I’m not going to show up here and say mission accomplished,” Warsh said. “What I’d say is there’s plenty of work to do.”Corporate Highlights:Chinese AI pioneer DeepSeek has begun preparations for an initial public offering and may file as soon as this year, setting the stage for what could be a landmark debut for the country’s technology industry. Some of the main moves in markets:StocksS&P 500 futures rose 0.2% as of 11:19 a.m. Tokyo time Nikkei 225 futures (OSE) rose 1% Japan’s Topix rose 0.4% Australia’s S&P/ASX 200 rose 0.4% Hong Kong’s Hang Seng rose 0.7% The Shanghai Composite was little changed Euro Stoxx 50 futures fell 0.3% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1434 The Japanese yen was little changed at 162.11 per dollar The offshore yuan was little changed at 6.7693 per dollar CryptocurrenciesBitcoin was little changed at $64,559.19 Ether fell 0.4% to $1,867.4 BondsThe yield on 10-year Treasuries was little changed at 4.59% Japan’s 10-year yield declined 2.5 basis points to 2.680% Australia’s 10-year yield declined three basis points to 4.88% CommoditiesWest Texas Intermediate crude rose 1% to $80.12 a barrel Spot gold fell 0.6% to $4,030.50 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Stephen Kirkland and Alice French.©2026 Bloomberg L.P.
