Australia

Australian shares are set to rise this morning following an optimistic day for global markets. Most major indices worldwide moved higher as investors welcomed the US consumer-price index. Year-over-year headline inflation cooled to 4.0% in May, compared to 4.9% in April.

ASX futures were 37 points or 0.5% higher as of 6:00am on Wednesday, suggesting a positive open.

US stock indices gained Tuesday after new data suggested that inflation eased last month to around half of last year's peak level.

The S&P 500 advanced 0.7%, while the Dow Jones Industrial Average edged up 0.4% and the Nasdaq Composite gained 0.8%. Canadian stocks also performed strongly, with the S&P/TSX Composite closing up 0.4%.

The consumer-price index for May showed prices rose 4% from a year earlier, a cooldown from April's 4.9% increase. Core CPI, which excludes volatile food and energy categories, was at 5.3%. Shelter was the main factor keeping core prices elevated.

In commodity markets, Brent crude oil jumped 3.1% to US$74.08 a barrel while gold lost 0.8% to US$1,942.42.

Australian government bonds were mixed, with the 2 Year yield edging up to 4.01% and the 10 Year yield slightly lower at 3.93%. US Treasury notes were higher, with the 2 Year yield increasing to 4.68% and the 10 Year yield rising to 3.83%.

The Australian dollar increased to 67.67 US cents from its previous close of 67.48. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, inched down to 97.10.

Asia

Chinese shares ended higher Tuesday, following the central bank's move to cut the reverse repo rate. The move boosted investors' hopes that more policy-easing is on the way to shore up the economy. Software and chip makers led gains. iFlytek Co. rose 9.3%. Semiconductor Manufacturing International Corp. increased 4.8% and Hygon Information Technology was up 3.05%. Energy and telecom stocks were among losers. PetroChina Co. dropped 2.2% and China Mobile was down 2.3%. The Shanghai Composite Index was up 0.15% at 3233.67. The Shenzhen Composite Index rose 0.6% and the ChiNext Price Index increased 0.7%.

Hong Kong shares ended higher after the People's Bank of China cut the reverse repo rate. The Hang Seng Index ended 0.6% higher at 19521.42, with tech companies leading the gains. Lenovo Group added 5.6%, Baidu was 4.9% higher and Xiaomi climbed 2.6%. The Hang Seng Tech Index rose 2.4% to reclaim the 4000 level. Among the losers were energy and telecom stocks, tracking their Chinese counterparts. Cnooc was 3.4% lower, PetroChina shed 2.1% and China Mobile declined 1.1%.

Japan's Nikkei Stock Average rose 1.8% to close at 33018.65 amid expectations that US data due later today may show CPI rose less in May than in April. The recent slowdown in US headline inflation has spurred speculation that the Fed could opt to keep rates on hold on Wednesday, says Michael Hewson, chief market analyst at CMC Markets, in an email. Gains on Japan's benchmark index were relatively broad-based, with Lasertec climbing 6.3%, SoftBank Group rising 5.25% and Toyota Motor adding 5.05%.

Indian shares ended higher following a broad upturn in Asian equities and overnight gains on Wall Street. The market broadly expects a pause in the Fed's monetary tightening, which bodes well for riskier assets such as Indian stocks. The benchmark Sensex rose 0.7% to settle at 63143.16, with broad-based gains. Asian Paints rose 2.15%, watch and accessories maker Titan Co. added 2.1% and Axis Bank was 1.25% higher.

Europe

European stocks moved up Tuesday following a strong session for Asian markets. The pan-European Stoxx Europe 600 gained 0.6%, the French CAC 40 added 0.6% and the German DAX advanced 0.8%.

British stocks finished higher, with the FTSE 100 gaining 0.3%. Investors adopted a more optimistic tone after a positive reading of US inflation data, CMC Markets analyst Michael Hewson said in a note. The year-over-year consumer-price index (CPI) rose 4.0% in May, compared to 4.9% in April.

"The latest US inflation numbers for May came in at a two-year low, and speculation about further Chinese stimulus measures also boosted sentiment," Hewson explained. Miners outperformed the FTSE as copper prices reached one-month highs with Glencore, Antofagasta and Anglo American shares closing up 5.3%, 3.5% and 2.75%, respectively. Shell and BP shares closed up 0.8% and 0.5%, boosted by a rebound in oil and gas prices.

North America

US stock indices gained Tuesday after new data suggested that inflation eased last month to around half of last year's peak level.

The S&P 500 advanced 0.7%, while the Dow Jones Industrial Average edged up 0.4% and the Nasdaq Composite gained 0.8%. Canadian stocks also performed strongly, with the S&P/TSX Composite closing up 0.4%.

The consumer-price index for May showed prices rose 4% from a year earlier, a cooldown from April's 4.9% increase. Core CPI, which excludes volatile food and energy categories, was at 5.3%. Shelter was the main factor keeping core prices elevated.

The data comes as the Federal Reserve kicked off its policy meeting Tuesday. The central bank has been raising rates to bring inflation down to its 2% target and is expected to announce tomorrow that it is holding rates steady. Investors will be watching for clues that the Fed could resume rate hikes later this year.

Among individual stocks, Tesla's hot streak continued. The electric-car maker finished its 13th-straight gain on Tuesday, its longest winning streak ever. Options traders are betting the stock keeps rising.

Nvidia shares climbed 3.9%, hitting the $1 trillion market capitalization mark.

GameStop jumped. The meme stock surged 10.9% after Executive Chairman Ryan Cohen increased his stake in the firm.