{"id":62391,"date":"2026-05-26T21:38:18","date_gmt":"2026-05-27T01:38:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-rally-on-china-profit-surge-and-us-iran-optimism-australia-inflation-eases\/62391\/"},"modified":"2026-05-26T21:38:18","modified_gmt":"2026-05-27T01:38:18","slug":"asia-markets-rally-on-china-profit-surge-and-us-iran-optimism-australia-inflation-eases","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-rally-on-china-profit-surge-and-us-iran-optimism-australia-inflation-eases\/62391\/","title":{"rendered":"Asia Markets Rally on China Profit Surge and US-Iran Optimism; Australia Inflation Eases"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-rally-on-china-profit-surge-and-us-iran-optimism-australia-inflation-eases\/62391\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-rally-on-china-profit-surge-and-us-iran-optimism-australia-inflation-eases\/62391\/#China_Industrial_Profits_and_Regional_Market_Gains\" >China Industrial Profits and Regional Market Gains<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-rally-on-china-profit-surge-and-us-iran-optimism-australia-inflation-eases\/62391\/#Australias_Inflation_Cools_as_Construction_Surges\" >Australia\u2019s Inflation Cools as Construction Surges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-rally-on-china-profit-surge-and-us-iran-optimism-australia-inflation-eases\/62391\/#AI_Boom_Hits_Milestones_Amid_Cost_Concerns\" >AI Boom Hits Milestones Amid Cost Concerns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-rally-on-china-profit-surge-and-us-iran-optimism-australia-inflation-eases\/62391\/#Commodities_and_Geopolitical_Tensions\" >Commodities and Geopolitical Tensions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-rally-on-china-profit-surge-and-us-iran-optimism-australia-inflation-eases\/62391\/#Global_Economic_Outlook\" >Global Economic Outlook<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>China\u2019s industrial profits surged 24.7% Y\/Y in April<\/strong>, significantly outperforming the previous 15.8% growth and signaling a robust recovery in the manufacturing sector.<\/li>\n<li><strong>Australia\u2019s headline CPI slowed to 4.2% Y\/Y<\/strong>, coming in below the 4.4% estimate and prompting the <strong>Australian Dollar<\/strong> to pare earlier gains against the greenback.<\/li>\n<li><strong>SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>) reached a historic $1 trillion valuation<\/strong> as the global AI boom continues to drive massive demand for South Korean semiconductor stocks.<\/li>\n<li><strong>WTI Crude fell below $92.00 per barrel<\/strong> as traders weighed the potential reopening of the Strait of Hormuz against ongoing uncertainty regarding a US-Iran peace deal.<\/li>\n<li><strong>North Korea successfully tested new AI-guided cruise missiles<\/strong>, featuring ultra-precision targeting, adding fresh geopolitical friction to the Asia-Pacific region.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"China_Industrial_Profits_and_Regional_Market_Gains\"><\/span>China Industrial Profits and Regional Market Gains<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>China\u2019s industrial profits jumped 24.7% Y\/Y in April<\/strong>, a sharp acceleration from the 15.8% recorded in the prior month. On a year-to-date basis, profits for industrial firms rose <strong>18.2%<\/strong>, up from the previous <strong>15.5%<\/strong> clip, suggesting that Beijing\u2019s recent stimulus measures are gaining traction.<\/p>\n<p>Broader Asia markets rose on Wednesday, supported by <strong>optimism surrounding a potential US-Iran deal<\/strong> and a surge in AI-related technology stocks. <strong>Taiwan equities climbed over 2%<\/strong> as investor sentiment strengthened, while the <strong>Taiwan overnight interbank lending rate<\/strong> opened slightly higher at <strong>0.807%<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Australias_Inflation_Cools_as_Construction_Surges\"><\/span>Australia\u2019s Inflation Cools as Construction Surges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Australia\u2019s monthly <strong>CPI indicator rose 4.2% Y\/Y in April<\/strong>, cooling faster than the <strong>4.4%<\/strong> expected by analysts. The <strong>Trimmed Mean CPI<\/strong>, a key measure of underlying inflation, held steady at <strong>3.4% Y\/Y<\/strong>, matching estimates but remaining slightly above the previous <strong>3.3%<\/strong> reading.<\/p>\n<p>Despite the cooling inflation, <strong>Australia\u2019s Construction Work Done for Q1 surged by 3.4%<\/strong>, dwarfing the <strong>0.8%<\/strong> estimate and reversing a previous contraction of <strong>0.1%<\/strong>. The <strong>Australian Dollar<\/strong> initially advanced on the construction data but quickly retreated after the softer inflation figures suggested a less aggressive path for the <strong>Reserve Bank of Australia (RBA)<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"AI_Boom_Hits_Milestones_Amid_Cost_Concerns\"><\/span>AI Boom Hits Milestones Amid Cost Concerns<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>)<\/strong> saw its valuation hit the <strong>$1 trillion mark<\/strong>, fueled by the relentless demand for high-bandwidth memory chips. Meanwhile, <strong>Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>)<\/strong> avoided further labor disruption as <strong>74% of unionized employees<\/strong> voted to back the latest wage deal.<\/p>\n<p>However, a shift in AI sentiment is emerging as some major companies begin to <strong>cut back on AI use<\/strong>, citing costs that have occasionally surpassed those of human workers. <strong>UBS (<a href=\"\/stock\/UBS\">UBS<\/a>)<\/strong> Co-President Iqbal Khan noted that while the bank remains focused on AI, the technology could have <strong>major ramifications for future job structures<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Commodities_and_Geopolitical_Tensions\"><\/span>Commodities and Geopolitical Tensions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Coffee prices surged 29% Y\/Y to $9.72 per pound<\/strong>, marking a staggering <strong>133% increase since January 2020<\/strong>. Food inflation remains a critical concern as <strong>ground beef prices hit a record $6.90 per pound<\/strong>, up nearly <strong>70%<\/strong> since the start of the decade, while <strong>steak prices reached $13.02 per pound<\/strong>.<\/p>\n<p>In geopolitics, <strong>North Korea\u2019s KCNA<\/strong> reported the successful test of an <strong>AI-guided lightweight cruise missile system<\/strong> designed for &quot;modern combat operations.&quot; Simultaneously, <strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> rose<\/strong> as safe-haven flows were triggered by sirens in northern Israel and reports of a <strong>U.S. military operation<\/strong> in the eastern Pacific that resulted in one fatality.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Global_Economic_Outlook\"><\/span>Global Economic Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>United States is expected to remain the world\u2019s largest economy<\/strong> this year, with a GDP projected to be larger than those of <strong>China, Germany, and India combined<\/strong>. Despite this dominance, domestic challenges persist as <strong>millions of Gen Z graduates struggle to find employment<\/strong>, according to recent reports.<\/p>\n<p>In Japan, the <strong>10-year Government Bond yield<\/strong> ticked up to <strong>2.730%<\/strong>, while the <strong>TOPIX<\/strong> reversed early gains to trade <strong>0.06% lower<\/strong>. Diplomats from Japan and the U.S. reaffirmed the <strong>importance of stability in the Taiwan Strait<\/strong>, even as China and Pakistan issued veiled criticisms of &quot;resurgent militarism&quot; in the region.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways China\u2019s industrial profits surged 24.7% Y\/Y in April, significantly outperforming the previous 15.8% growth and signaling a robust 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