The Nikkei 225 of Japan reaches a record level after American inflation remains stable | Financial markets

Asian stock markets see large gains in the midst of increasing expectations of an interest rate reduced by the American federal reserve.

The Japan’s reference banking index exceeded its top of all time for a second consecutive day in the middle of expectations of a drop in interest rates in the United States and the softening of trade tensions between Washington and Beijing.

The Nikkei 225 exceeded 43,421 points on Wednesday after the best American inflation data than the United States has strengthened the case for a reduction in rates by the American federal reserve at its next committee meeting in September.

The milestone occurred after the Nikkei violated the brand of 42,999 points on Tuesday for the first time.

In the United States, the Benchmark S&P 500 and the Nasdaq Composite, in charge of technology, also closed Tuesday after increasing 1.13% and 1.39% respectively, because investors applauded the latest inflation data press release, which showed that consumer prices increased by 2.7% by 2.7% in July.

Inflation data added to a positive turn of investors’ feeling after the announcement of US President Donald Trump on a 90 -day extension of his break on paralyzing prices on Chinese products on Monday.

Other Asian stock markets also accumulated large gains on Wednesday, with the Hang Kong and Kospi Hang Seng index in South Korea up around 2.50% and 1%, respectively.

The Fed and its chair, Jerome Powell, were under months under an intense pressure from Trump to a drop in interest rates.

A drop in the reference rate would give the American economy a boost, the largest engine of global growth, by reducing loan costs for households and American companies.

But the Fed has hesitated to reduce the rate due to the concerns it could stir up inflation at a time when Trump pricing rates are already putting pressure on prices.

“Jérôme” Too late “Powell must now reduce the rate,” said Trump in an article on Truth Social Tuesday, saying that the Fed chair had caused “incalculable” damage to the economy by not reducing loan costs.

On Tuesday, the Fedwatch tool of CME Group increased the probability of a rate drop from September to 96.4%, against 85.9% the day before.