Asia markets rise ahead of Fed meeting and as U.S. inflation rate hits two-year low

Asia-Pacific markets are largely higher as the inflation in the U.S. rose at a 4% annual rate in May, the lowest in two years. This gives room for the Federal Reserve to pause and skip a rate hike when they meet later this week.

In Japan, the Nikkei 225 popped 1.05% on its open, inching closer to the Nikkei’s all time high is just under 39,000 points in December 1989. The Topix also continued to set new year highs, climbing 0.85%.

In Australia, the S&P/ASX 200 climbed 0.32%, while South Korea’s Kospi slipped 0.22% and the Kosdaq traded close to the flatline.

South Korea’s unemployment rate came in at 2.5% for May, falling for the second straight month and lower than the 2.6% recorded in April.

Hong Kong’s Hang Seng index is also set for a strong open, with futures at 19,535 compared to the HSI’s close of 19,521.42.