The Fort Worth Press - Global stocks follow Wall Street climb

The eagerly awaited US consumer price index (CPI) data showed a 2.9 percent rise last month from a year ago -- its smallest 12-month increase since March 2021 -- setting the stage for the Federal Reserve to start cutting interest rates.

Traders were optimistic that a cut at the September meeting could exceed the anticipated 25 basis points, with some observers eyeing as much as 50.

"The current buzz isn't about whether the Fed will trim rates at its spotlight-stealing September 17-18 gathering but how deep they'll dig into the cuts," analyst Stephen Innes said in his Dark Side Of The Boom newsletter.

Positive growth figures from Japan meant the Nikkei 225 led the Asian surge, as the world's fourth-largest economy reported a better-than-expected GDP rise of 0.8 percent for the second quarter.

The news came a day after Prime Minister Fumio Kishida said he would step down next month as his poll ratings tumbled ahead of next year's elections due to price rises that have eaten into Japanese incomes, as well as a slew of scandals.

"Consumer sentiment should have improved because real wages have turned positive as promised wage increases start to get paid to workers," Hiroyuki Ueno, chief strategist at SuMi Trust, said before the data's release.

"In addition, the recovery in shipments by some automakers, some of which were suspended temporarily in May, will also have been a positive boost for consumer spending."

News from China, meanwhile, was not as bullish, with industrial production slowing and unemployment rising in July. Consumer spending marginally beat analyst expectations.

The uninspiring data dampened slim hopes for the start of an economic revival in Asia's biggest market.

"This snapshot of a once thriving economy underscores a persistent drag on domestic demand, not significantly alleviated by governmental initiatives aimed at boosting consumption and addressing imbalances in the recovery process," Innes said.

"No amount of rate cutting seems to entice consumer spending if confidence in the economy or personal financial security is lacking."

Despite the underwhelming news, Shanghai closed nearly a percent higher, while Hong Kong was marginally lower.

Seoul, Sydney and Singapore were also up, while Taipei, Jakarta and Bangkok ticked down.

European markets also began the day on a positive note, with London, Paris and Frankfurt all starting higher.

- Key figures around 0720 GMT -

Tokyo - Nikkei 225: UP 0.8 percent at 36,726.64 (close)

Hong Kong - Hang Seng Index: DOWN 0.1 percent at 17,094.64

Shanghai - Composite: UP 1.0 percent at 2,877.36 (close)

London - FTSE 100: UP 0.1 percent at 8,287.35

Paris - CAC 40: UP 0.2 percent at 7,347.62

Frankfurt - DAX: UP 0.4 percent at 17,956.67

Euro/dollar: UP at 1.1013 from $1.1012 on Tuesday

Pound/dollar: UP at $1.2857 from $1.2829

Dollar/yen: DOWN at 147.24 yen from 147.43 yen

Euro/pound: DOWN at 85.66 pence from 85.83 pence

West Texas Intermediate: UP 0.4 percent at $77.33 per barrel

Brent North Sea Crude: UP 0.4 percent at $80.07 per barrel

New York - Dow: UP 0.6 percent at 40,008.39 points (close)

S.Rocha--TFWP