Asian stocks advance with Nikkei 225 hovers near record highs

• Asian stocks appreciate as US inflation data reinforced expectations for a Fed rate cut in September.
• Japan's Nikkei 225 climbs 1.33% to surpass 43,300, remaining close to its record highs.
• Chinese equities gained as the US extended the implementation of sweeping tariffs on China.

Asian stocks rise on Wednesday after Wall Street's overnight rally, following United States (US) inflation data that strengthened expectations for a US Federal Reserve rate cut in September. Markets are now pricing in approximately 94% odds of a Fed rate cut at the September meeting, up from 86% a day ago, according to the CME FedWatch tool.

Japan's Nikkei 225 rises 1.33% to above 43,300, hovering near all-time highs. China's Shanghai Composite climbs 0.23% to close at 3,670, while the Shenzhen Component advances 0.66% to above 11,400. Hong Kong's Hang Seng appreciates 1.19% to above 25,300, hitting two-week highs. South Korea's KOSPI advances 0.58% to near 3,200.

Market sentiment improves in Japan after a trade agreement with Washington. Additionally, further BoJ policy normalization could be delayed due to domestic political uncertainty, concerns about the negative economic impact of higher US tariffs.

Chinese equities gained on news of an extended trade truce with the US, avoiding the imposition of triple-digit tariffs on Chinese exports. The Trump administration postponed the implementation of sweeping tariffs on China for an additional 90 days. China also decided to suspend additional tariffs on US goods for the same period, following Trump's executive order extending the tariff truce.

Beijing introduced a year-long program offering interest subsidies on personal consumer loans, with 90% of the costs covered by the central government and the remaining 10% by provincial authorities, aiming to stimulate household spending.

In South Korea, big firms like Samsung Electronics, SK Hynix partnered with KAI in the K-Humanoid Alliance, a state-led initiative aimed at developing humanoid robotics for aerospace manufacturing by 2030. Also, the nation's unemployment rate fell to 2.5% in July, marking a second consecutive monthly decline.