Asia Stocks Soar on Soft US Inflation and Surprising China Data

Asian stocks surged to two-month highs as investors anticipated stimulus measures in China and an end to rate hikes in the United States. The dollar nursed steep losses following a benign U.S. inflation report. Bond markets in Australia and South Korea saw their strongest gains since March. U.S. consumer prices remained flat in October, below expectations, leading to speculation of rate cuts. Strong industrial output and retail sales data in China, along with plans for low-cost financing to boost the housing market, added to market optimism. Japan's economy contracted in July-September, dampening rate hike expectations.