Global Markets Edge Higher as U.S. Tech Rally Lifts Sentiment Ahead of Key Inflation Data

August 29, 2025 – Equity markets in Asia posted modest gains on Friday, buoyed by strength in U.S. technology shares, though investors remained cautious ahead of fresh inflation figures that could shape the Federal Reserve’s next policy move.

On Wall Street, both the S&P 500 and Dow Jones Industrial Average set new record highs, supported by enthusiasm around artificial intelligence despite Nvidia’s results falling short of the most bullish projections. The company’s earnings still confirmed robust demand for AI infrastructure, reinforcing optimism across the broader tech sector.

That momentum carried into Asia, where the MSCI Asia-Pacific index excluding Japan added 0.26%. Gains were uneven across the region: Hong Kong and South Korea rose, while Chinese equities lagged amid weakness in domestic technology names. Shares in Cambricon Technologies tumbled after the chipmaker issued a risk warning, weighing on sentiment in Shanghai and Shenzhen.

Currency and bond markets were steady as traders looked ahead to the release of the U.S. Personal Consumption Expenditures (PCE) Price Index. The data is expected to provide crucial signals on inflation trends and could confirm whether the Fed will proceed with an anticipated rate cut in September.

Oil prices hovered near recent levels, while gold consolidated around the $3,350 mark, supported by ongoing geopolitical risks and a softer dollar.

Analysts noted that while the AI-driven rally continues to underpin global equities, investors are hesitant to commit aggressively until there is more clarity from U.S. inflation data and central bank guidance.