Asian markets rally, Kospi surges 4% as US PPI data looms

Mettis Global reported that most Asian equity markets traded higher on Thursday, with South Korea and Japan leading the gains while Australian shares eased. Kospi in South Korea rose 4%, and the small-cap Kosdaq added 0.92%. Gains of 1.5% for the Nikkei 225 and 0.99% for the Topix contrasted with a 0.12% dip in Australia's S&P/ASX 200.

Attention in the region centred on the US inflation outlook ahead of July's Producer Price Index, which was due later on Thursday. Economists polled by Dow Jones forecast a 0.2% monthly rise in producer prices. The previous day's Consumer Price Index had shown a 0.1% monthly increase in July, matching expectations, and this helped Wall Street's S&P 500 close higher after two sessions of losses.

Traders reportedly scaled back bets on a US rate hike in September, while participants still view October or December as likelier timing for an increase. Tech shares also drew attention, with CoreWeave and other technology names rising after results, while Cisco Systems fell nearly 4% and Cerebras dropped 15%. Retail sales data for July is scheduled for Friday, with economists expecting a 0.1% monthly gain.