A currency trader talks on the phone near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, Aug. 13, 2025. (AP Photo/Ahn Young-joon)2025-08-13T05:13:58Z BANGKOK (AP) Shares charged higher Wednesday in Asia after the U.S. stock market rallied to records when data showed inflation across the United States improved slightly last month. Tokyos benchmark Nikkei 225 added to its record set a day earlier. Shares in Hong Kong, Singapore, Thailand and Malaysia also gained more than 1%. The recent rally in share prices has been driven partly by relief over an extended truce in President Donald Trumps trade war with China, and partly by persisting hopes the Federal Reserve will cut interest rates. Those were reinforced by a moderation in the consumer price index in July. Asia woke up in full risk-on mode, riding the coattails of a U.S. session that looked like someone hit the infinite bid button after CPI didnt blow the inflation doors off, Stephen Innes of SPI Asset Management said in a commentary. China and the U.S. agreed to extend by 90 days the pause in drastically higher tariff rates to allow more time for talks on a broad trade agreement. Although uncertainty over what the negotiations will yield remains, the truce has relieved pressure on companies and countries across Asia that rely heavily in supply chains routed through China. Hong Kongs Hang Seng surged 2.5% to 25,596.90, while the Shanghai Composite index added 0.5% to 3,683.46. Stay up to date with similar stories by signing up to our WhatsApp channel. In Japan, relief over the Trump administrations confirmation that its exports will face a flat 15% U.S. import duty has driven strong buying of computer chip-related companies and other exporters. The Nikkei 225 gained 1.3% to 43,274.67.Elsewhere in Asia, South Koreas Kospi advanced 1.1% to 3,224.37. In Australia, the S&P/ASX 200 shed 0.6% to 8,827.10. Taiwans Taiex was up 0.9% and the Sensex in India gained 0.4%. In Bangkok, the SET climbed 1%. On Tuesday, the S&P 500 rose 1.1% to top its all-time high set two weeks ago. It closed at 6,445.76. The Dow Jones Industrial Average climbed 1.1% to 44,458.61, while the Nasdaq composite jumped 1.4% to set its own record of 21,681.90.Intels stock rose 5.6% after Trump said its CEO has an amazing story, less than a week after he had demanded Lip-Bu Tans resignation. Circle Internet Group, the company behind the popular USDC cryptocurrency that tracks the U.S. dollar, climbed 1.3% despite reporting a larger loss for the latest quarter than analysts expected. It said its total revenue and reserve income grew 53% in its first quarter as a publicly traded company, which topped forecasts. The better-than-expected report on inflation raised hopes the Federal Reserve will have the leeway to cut interest rates at its next meeting in September. Tuesdays report said U.S. consumers paid prices for groceries, gasoline and other costs of living that were overall 2.7% higher in July than a year earlier. Thats the same inflation rate as Junes, and it was below the 2.8% that economists expected. Lower rates would give a boost to investment prices and to the economy by making it cheaper for U.S. households and businesses to borrow to buy houses, cars or equipment. President Donald Trump has angrily been calling for cuts to help the economy, often insulting the Feds chair personally while doing so. The Fed has hesitated, worried that Trumps tariffs could make inflation much worse. The Fed will get one more report on inflation and another on the U.S. job market, before its next meeting, which ends Sept. 17. The most recent jobs report was a stunner, coming in much weaker than economists expected. Critics say the broad U.S. stock market is looking expensive after its surge from a bottom in April. Thats putting pressure on companies to deliver continued growth in profit. In other dealings early Wednesday, U.S. benchmark crude oil dropped 26 cents to $62.89 per barrel. Brent crude, the international standard, declined 21 cents to $65.92 per barrel. The U.S. dollar fell to 147.52 Japanese yen from 147.84 yen. The euro climbed to $1.1710 from $1.1677. ELAINE KURTENBACH Based in Bangkok, Kurtenbach is the APs business editor for Asia, helping to improve and expand our coverage of regional economies, climate change and the transition toward carbon-free energy. She has been covering economic, social, environmental and political trends in China, Japan and Southeast Asia throughout her career. twitter mailto RSShttps://feedx.net https://feedx.site