# Asian stocks climb on soft US CPI and AI earnings boost

**Published:** 2026-08-13T04:11:05.299Z  
**Topic:** Stock To Flow  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/33498486-f32c-44c1-8cea-64b34c9c9bb3

Asian equities rise as July US CPI eases to 3.4% YoY and AI‑focused earnings lift tech, with Korea’s KOSPI up 4.2% and Japan’s Nikkei up 1.6%.

Asian equities jumped on Tuesday after US headline CPI eased to 3.4% YoY, reinforcing expectations of a more dovish Federal Reserve, while strong AI‑related earnings from major tech firms spurred a rally in semiconductor stocks across the region [2].

| At a glance | |
|---|---|
| US CPI (July) | 3.4% YoY |
| Nikkei 225 | +1.63% to 68,600 |
| KOSPI | +4.22% to >6,850 |
| Catalyst | Soft US inflation & AI earnings |

## Soft inflation fuels Fed outlook  
The July US CPI reading slipped to 3.4% year‑over‑year, down from 3.5% in June, while core CPI fell to 2.5% from 2.6% [2]. Both numbers matched forecasts, prompting the CME FedWatch tool to price a 40.1% chance of a September rate hike, down from a 60% probability for an October hike the day before. This shift lowered expectations for near‑term tightening, lifting risk‑on sentiment across Asian markets.

## AI earnings lift tech and chip stocks  
Tech‑heavy earnings reinforced confidence in sustained AI infrastructure spending. In South Korea, the KOSPI surged nearly 4.22% to breach 6,850 as chipmakers rallied on the back of US tech gains. Samsung Electronics rose almost 5% and SK Hynix jumped over 9%, reflecting renewed optimism over AI‑driven demand for semiconductors [2]. BNY’s Wee Khoon Chong noted that sovereign‑wealth‑fund inflows into Korean tech firms may be bolstering this sentiment. Japan’s Nikkei 225 also climbed 1.63% to clear 68,600, aided by a modest easing in domestic producer‑price inflation to 7.2% in July [2].

## Broader market breadth  
Greater China joined the AI‑driven rally, with Shanghai Composite up 0.40% to 3,960 and Shenzhen Component gaining 0.73% to 14,520. Investor focus remained on SMIC ahead of its earnings report, where net profit is expected to more than double year‑over‑year [2].

## What to watch  
- US core CPI for August and any Fed minutes that could reshape rate‑hike probabilities.  
- Upcoming earnings from SMIC and other Chinese semiconductor firms, which could confirm the AI demand narrative.  
- Potential sovereign‑wealth‑fund allocations into Korean tech stocks, which may sustain the KOSPI’s upward momentum.

The softening of US inflation and the AI earnings surge have combined to lift Asian equities, but the durability of the rally hinges on further inflation data and the pace of AI‑related spending in the semiconductor sector.

## Sources
1. Moneycontrol — [Asian Market](https://www.moneycontrol.com/news/tags/asian-market.html)
2. FXStreet — [Asian stocks rise on soft US CPI, AI earnings rally](https://www.fxstreet.com/news/asian-stocks-rise-on-soft-us-cpi-ai-earnings-rally-202608130351)

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Cite as: TrendWatcher, "Asian stocks climb on soft US CPI and AI earnings boost", https://www.trendwatcher.in/article/33498486-f32c-44c1-8cea-64b34c9c9bb3