Asian Stock Markets Rise as Australian Shares Rally; Investors Eye U.S. Jobs Data and China Inflation

Asian stock markets posted modest gains on Wednesday, led by a strong rally in Australian shares, as investors weighed softer-than-expected Chinese inflation data and awaited key U.S. jobs figures that could influence Federal Reserve interest rate policy.

Australia’s S&P/ASX 200 index surged 1.5%, reaching its highest level in 15 weeks, driven by upbeat corporate earnings. Commonwealth Bank of Australia shares jumped more than 8% after the lender reported stronger-than-expected half-year profits, supported by resilient margins and stable credit quality. Energy stocks also contributed to the rally, with AGL Energy advancing sharply following solid earnings and a reaffirmed outlook. James Hardie Industries climbed over 13% on the back of robust quarterly results and continued demand in major overseas markets. However, gains were partially offset by a more than 12% drop in CSL Ltd after weak half-year earnings and news of a CEO transition.

Across the region, trading volumes were thinner with Japanese markets closed for a public holiday. The Nikkei 225 had ended at a record high on Tuesday, fueled by optimism surrounding Prime Minister Sanae Takaichi’s election victory. South Korea’s KOSPI index rose nearly 1%, Singapore’s Straits Times Index edged up 0.2%, and futures for India’s Nifty 50 indicated a 0.1% gain.

In China, inflation data signaled ongoing economic challenges. The consumer price index increased at a slower pace than expected in January, while producer prices remained in deflation, highlighting persistent weakness in domestic demand. Chinese equities were subdued, with the CSI 300 and Shanghai Composite trading flat, while Hong Kong’s Hang Seng index added 0.3%.

Meanwhile, U.S. stock futures edged higher in Asian trading after Wall Street closed lower overnight, as investors locked in profits ahead of critical U.S. employment data that could reshape expectations for future Fed rate moves.