▸ Global stocks extend rally after American inflation data lifts sentiment▸ Latest reading paves way for Fed to cut interest rates in September▸ Asian indices benefit from a weaker dollar and lower US ratesGlobal stocks extended a rally yesterday with Japan's benchmark index following Wall Street to new record highs after steady American inflation data prompted traders to lift bets that the US Federal Reserve would cut interest rates next month.Tokyo's benchmark Topix rose 0.8 per cent to an all-time high, Taipei's Taiex closed just short of a new peak and Seoul's Kospi strengthened 1.1 per cent.On Wall Street, the blue-chip S&P 500 was 0.2 higher by early afternoon in New York after rising 1.1 per cent on Tuesday.Across the Atlantic, the Stoxx Europe 600 was up 0.5 per cent and Frankfurt's Xetra Dax climbed 0.7 per cent.The gains followed figures on Tuesday that showed inflation in the world's largest economy was unchanged at 2.7 per cent in July, defying expectations that President Donald Trump's sweeping tariffs would drive it higher.
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