Nikkei Stock Average Hits 2-Month High, Briefly Surpassing 40,000 Amid Positive US Inflation Data

Japan's Nikkei Stock Average reached a two-month high, briefly surpassing the 40,000 mark, following positive US inflation data that suggested potential interest rate cuts. The rise in Asian stocks was attributed to the favorable US inflation figures, which alleviated concerns over monetary policy tightening. However, the Nikkei faced a setback as traders began to lock in profits, leading to a decline at the market's opening. Despite the initial gains, major stocks experienced selling pressure, reflecting a cautious sentiment among investors as they continue to evaluate the implications of the recent US economic data.