Global Markets Rebound as Inflation Data and Earnings Drive Investor Sentiment

Asia-Pacific markets rose, following Wall Street's lead as U.S. markets ended a three-day losing streak. Australia's S&P/ASX 200 climbed 1.50%, Japan's Nikkei 225 closed fractionally higher, South Korea's Kospi saw its largest one-day gain since February, and Hong Kong's Hang Seng index extended its gains. Fed officials emphasized the need for more rate hikes to bring down inflation, while Nomura economists suggested that Asian central banks could diverge from the Fed's tightening cycle. Shares of Indian mining firm Vedanta fell after Apple supplier Foxconn pulled out of a $19.5 billion joint venture, and China announced an extension of financial policies supporting its real estate market. Australia's consumer sentiment rose in July, and the Philippines' trade deficit fell in May. Japanese investors purchased a record amount of foreign debt in the first half of the year.