Asian stocks extended sharp gains on Thursday, with Japan’s Nikkei hitting a record high, as investors took cues from a record close on Wall Street and assessed China's stronger-than-expected economic growth figures.
US import prices increased less than expected in March, though the trend still pointed to firming imported inflationary pressures as the Middle East conflict boosts oil prices and snarls supply chains.
The International Monetary Fund cut its growth outlook on Tuesday due to Middle East war-driven energy price spikes but said the world was already drifting toward a more adverse scenario with much-weaker growth as Strait of Hormuz shipping disruptions continue.
Asian currencies kept to a tight band on Wednesday as markets sought more cues on extended ceasefire talks between the U.S. and Iran, while soft U.S. inflation data released overnight provided some relief.
Oil prices fell for a second day on Wednesday on expectations peace talks between the U.S. and Iran may resume and supply will eventually be released from the key Middle East producing region trapped by the closure of the Strait of Hormuz.
Japan stocks were higher after the close on Wednesday, as gains in the Real Estate, Banking and Textile sectors led shares higher.