# Seoul's Tech Sector Fuels Asian Stock Market Surge as US Inflation Fears Ease

*Seoul's tech sector spearheaded gains across Asian stocks as traders reacted positively to slowing US inflation, easing fears of imminent Federal Reserve rate hikes.*

August 13, 2026 · business

Seoul led the charge in Asian stocks Thursday, as investors flocked back to tech firms following a summer selloff. Confidence was bolstered by signs of easing US inflation, which has dampened fears of immediate Federal Reserve rate hikes.

## Market Dynamics

The consumer price index (CPI) report for July showed inflation slowing, aligning with forecasts and following indications of a softer jobs market. This data provides the Federal Reserve with the flexibility to maintain current borrowing costs for the time being. However, with inflation remaining above the Fed's two percent target for over five years and geopolitical tensions driving up oil prices, monetary tightening is still anticipated at some point.

Neil Wilson at Saxo Markets noted, 'July marked 65 consecutive months with inflation running above target. Nevertheless, odds of a rate hike in September were pushed out by the US CPI report.' He added that the market is questioning whether Fed Chair Kevin Warsh will match his inflation-busting rhetoric, leading to firmer stock futures, a weaker dollar, and rising gold prices.

## Tech Sector Revival

South Korea's Kospi surged nearly five percent at the open, driven by a revival in the AI trade that has propelled the market to record highs this year. Chipmakers SK hynix and Samsung were at the forefront, recovering from a global tech sector rout that had wiped trillions off valuations.

Elsewhere in Asia, Tokyo, Shanghai, Wellington, and Taipei all saw gains, while Hong Kong, Singapore, and Sydney experienced dips. The recent market bounce has been supported by bargain-buying, government measures to stabilize retail investor volatility, and strong earnings reports from tech giants like Amazon and Microsoft.

## Sources

- BSS

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Source: https://pulsetoday.com.bd/en/business/seoul-tech-leads-asian-stock-gains-us-inflation