Markets rise ahead of US inflation

NEW YORK - Asian markets ticked higher on Thursday, with focus on the release of key US inflation data that comes as traders ramp up bets the Federal Reserve will cut interest rates next year.

Observers say signs the world's top economy is feeling the effect of long-running monetary tightening has given the bank room to take a more dovish approach to fighting inflation, which is sharply down from the four-decade highs seen in 2022.

That, combined with several Fed decision-makers indicating they are in favour of holding rates where they are, has given a much-needed shot of confidence to traders at the end of a tough year.

And the latest reports provided further optimism.

Gross domestic product expanded quicker than expected in the third quarter and consumer spending growth slowed slightly.

The readings suggest the Fed is managing to control prices while not causing too much pain for the economy. 

Markets were subdued in early Asian trade on Thursday after a largely flat day in New York but they mostly recovered some of their mojo in the afternoon.

Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Jakarta and Taipei all rallied, though Singapore, Manila, Mumbai and Bangkok were in the red.

London, Paris and Frankfurt rose at the open.

Oil extended a two-day rally on a report that OPEC and its allies were mulling additional cuts of as much as a million barrels per day.