asian markets
File: Asian stocks rose Friday following a jump in Wall Street on US inflation data cementing expectations of more subdued Fed rate hike. Image Credit: AP

Hong Kong: Asian markets surged on Friday after a bumper session on Wall Street as lower US inflation dimmed expectations of more aggressive Federal Reserve rate hikes.

Hong Kong stocks rocketed 6 per cent at the open while Tokyo's key Nikkei index jumped more than 3 per cent, although both had retreated slightly by mid-morning.

The gains extended global rallies after the US consumer price index (CPI) showed that the annual pace of inflation was a lower-than-expected 7.7 per cent in October, down from 8.2 per cent in September.

As US residents reel from sky-high costs, the central bank has moved forcefully to lower demand by raising the benchmark lending rate six times this year.

The latest inflation data should be welcome news to Fed policymakers, because prices are "finally showing some response" to the steep rate hikes, said Rubeela Farooqi of High Frequency Economics.

"Inflation has finally started to drop like a rock in the US and this is the best news that anyone can expect," added AvaTrade analyst Naeem Aslam.

The dollar slumped against rival currencies following the data release, and shares rallied as investors cheered the prospect of less hawkish moves by the central bank.

The Dow was up 3.7 at the close and the tech-heavy Nasdaq index soared 7.4 per cent, while European markets also ended higher.

Most Asian markets matched the upbeat mood.

Taipei jumped 3.5 per cent, Seoul was up 2.8 per cent and Sydney climbed 2.6 per cent.

Singapore rose 1.4 per cent, Shanghai was up 1.1 per cent and Wellington put on 2.0 per cent, but Bangkok lost 0.2 per cent.

"As expected, buying in Asia tech is standing out this morning," Stephen Innes of SPI Asset Management said.

"But with investors still looking over their shoulders at the crypto schism and rising Covid cases in China, that tide that was lifting all boats is starting to recede in places," he cautioned.

Trade may also be "dominated by profit-taking and position squaring" after the rallies overnight and ahead of a US market holiday on Friday.

The crypto world has meanwhile been rocked by a surprise decision from Binance, the world's biggest cryptocurrency platform, to scrap a possible acquisition of rival - plunging bitcoin to a two-year low.

Key figures around 0230 GMT 

Tokyo - Nikkei 225: UP 2.7 per cent at 28,200.75 (break)

Hong Kong - Hang Seng Index: UP 5.2 per cent at 16,925.56

Shanghai - Composite: UP 1.1 per cent at 3,071.43

Pound/dollar: UP at $1.1678 from $1.1642 on Thursday

Euro/dollar: DOWN at $1.0188 from $1.0131

Dollar/yen: DOWN at 142.13 yen from 143.15 yen

Euro/pound: UP at 87.26 pence from 87.20 pence

West Texas Intermediate: UP 0.3 per cent at $86.75 per barrel

Brent North Sea crude: UP 0.3 per cent at $93.95 per barrel

New York - Dow: UP 3.7 per cent at 33,715.37 points (close)

London - FTSE 100: UP 1.1 per cent at 7,375.34 (close)