Asian stock markets rose after lower-than-expected US inflation data gave investors confidence.
The data eased concerns that the US Federal Reserve (Fed) will raise interest rates in the near future.
At the same time, investor interest in artificial intelligence (AI)-related companies also helped strengthen market sentiment.
The MSCI Asia Pacific stock index rose about 1.2%, with most major markets closing higher. South Korea was the best performer as the Kospi index jumped more than 6%.
The rise was driven by shares of memory chip maker SK Hynix, which rose about 10% after the company's shares in the United States recorded a bigger jump. Japanese and Australian stock markets also rose.
In the United States, slower inflation data led investors to reduce expectations that the Fed will raise interest rates in the near future.
This situation provided relief to the market because lower interest rates usually encourage investment activity and economic growth.
The US dollar also weakened against other major currencies, while gold prices remained high as investors sought safer assets.
Meanwhile, oil prices rose for a third straight day. The rise came after President Donald Trump threatened further military action against Iran, while the United States continued to impose sanctions on Iranian shipments through the Strait of Hormuz.
Brent crude oil prices rose above US$86 a barrel after jumping more than 11% in the previous two trading sessions.
Although inflation data showed positive developments, Fed Chairman Kevin Warsh stressed that efforts to control price increases were not yet complete.
According to him, inflation is indeed subsiding, but the US central bank still needs to ensure that it truly returns to target levels before any changes in monetary policy are considered.
