Asian equities rallied on Thursday (June 13) while bond yields slid, as investors weighed cooling U.S. inflation against a more hawkish posture by the Federal Reserve.

Japan’s Nikkei share average climbed 0.79% to 39182.06 after the stock market opened in Tokyo in the morning while South Korea’s benchmark Korea Composite Stock Price Index (KOSPI) opened up 1.60% to 2,771.93 points as of 0128GMT. The Hong Kong stock market opened 166 points higher, with the Hang Seng Index reported at 18,104 points.

Jerry Parwada, a finance professor at the University of New South Wales Business School said he expects a concerted effort from authorities at controlling inflation.

“With some elections around the corner in key areas, you will see interest rates start to come down with the respective governments locking in some early gains I think,” Parwada added.

(Reuters)