Majority of markets rise as China-US truce extended, inflation in focus

(MENAFN) Asian stocks mostly advanced on Tuesday, with Tokyo’s Nikkei 225 surging 2.8% to a record high of 42,983.34, after the US and China agreed to extend their tariff truce. The move delays steep levies and allows trade talks to continue into November.

The White House maintained its stance that persistent US trade deficits pose a threat to national security and the economy, while analysts said Beijing is unlikely to offer concessions but will welcome continued dialogue.

Attention is now turning to the US consumer price index (CPI), due later in the day, as markets weigh its impact on Federal Reserve interest rate decisions. Analysts warned that a stronger-than-expected reading could fuel stagflation concerns, while a softer number may ease pressure.

Although tariffs could add to inflationary pressures, economists noted that the bigger effects may not be felt until late summer, as companies await clarity on final reciprocal measures. Investors are also awaiting wholesale prices, retail sales, and the Fed’s preferred inflation gauge later this month, ahead of an expected rate cut in September and possibly another by year-end.

Elsewhere in Asia, Hong Kong, Shanghai, Seoul, Sydney, Taipei, Mumbai, Jakarta and Manila also posted gains, while Singapore and Wellington slipped.

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