Global Markets React to U.S. Inflation and Trade Wars

Asian stocks edged higher while the U.S. dollar wobbled on Wednesday following relatively mild U.S. inflation data, fueling hopes of Federal Reserve rate cuts. However, investors continued to assess the enduring impact of global trade conflicts.

President Trump's international tariff wars paused, easing tensions with China. Yet, market analysts like IG's Tony Sycamore urged caution, noting that while the worst-case scenarios seem priced out, the market remains on edge pending further trade negotiations.

Meanwhile, the MSCI Asia-Pacific index climbed, with strong performances from tech stocks like JD.com boosting Hong Kong's Hang Seng. All eyes are on upcoming earnings from Tencent and Alibaba as global economic sentiment cautiously improves.

(With inputs from agencies.)