Asian shares have advanced following a rally on Wall Street driven by encouraging update on U.S. inflation. Oil prices rose and U.S. futures were little changed.

A global equities gauge rallied on Wednesday while U.S. Treasury yields fell after data showed core U.S. inflation rose less than expected in December, raising hopes that the Federal Reserve could ease rates further.

U.S. stocks ripped higher Wednesday following a shot of adrenaline from an encouraging update on U.S. inflation. Strong profit reports from Wells Fargo and other big U.S. banks also helped launch indexes to their best day in two months.

Asian markets extended a global rally Thursday after below-forecast US inflation provided a much-needed shot of relief to investors and revived hopes for interest rate cuts this year.

European and U.S. futures pointed to a modest bounce on Tuesday, though spiking bond yields and a strong dollar have investors wary of taking too many risks ahead of U.S. inflation data and the start of Donald Trump's second term as U.

US stocks surged on Wednesday, fueled by a slowdown in core inflation and better-than-expected earnings from major banks. The Dow Jones Industrial Average rose by 804 points, or 1.9%, while the S&P 500 gained 2% and the Nasdaq Composite climbed 2.

Global market focus on Wednesday is on the U.S. consumer inflation index, which will be out at 8:30 a.m. ET. Economists polled by Dow Jones see headline CPI rising 0.3% on a month