When inflation rises in the U.S., it can have ripple effects on global markets, including Australia’s. Although the inflation bump is moderate, it still signals a shift that may influence the U.S. Federal Reserve’s policy direction, and that, in turn, impacts global capital flows and demand for certain goods and services. A controlled rise in inflation without runaway numbers is more likely to lead to further U.S. rate cuts, which could push investors to seek higher yields internationally, especially in stable markets like Australia.

With a relatively favorable inflationary environment in the U.S., American investors might look to diversify into ASX stocks that are likely to benefit from continued rate cuts. Here are some ASX sectors—and specific stocks—well-positioned to capitalize on this trend.

Resource Stocks: BHP Group (ASX: BHP) and Rio Tinto (ASX: RIO)

Rising inflation often leads to increased demand for commodities as both investors and consumers turn to assets that typically retain value. For instance, metals like gold, copper, and iron ore become more attractive during inflationary periods. This trend can especially benefit major ASX-listed mining giants like BHP Group and Rio Tinto, which have substantial global exposure and strong revenue from the U.S. market.

These companies are also favored by the weakened U.S. dollar, which tends to follow rate cuts and can make exports more attractive. Since these resource stocks have well-established positions in global markets and benefit directly from rising commodity prices, they could offer an attractive hedge against U.S. inflation.

Energy Stocks: Woodside Energy Group (ASX: WDS)

Energy companies, especially those focused on oil and gas, tend to perform well in inflationary environments because energy prices usually rise alongside inflation. Woodside Energy Group, one of Australia’s largest oil and gas producers, is well-positioned to benefit from these dynamics. Rising energy prices in the U.S. often drive up global prices, which in turn boosts revenue for companies like Woodside with substantial international demand.

Woodside’s focus on LNG (liquefied natural gas) aligns well with global energy needs, especially as the Northern Hemisphere moves into the winter season, pushing up demand. With favorable conditions for energy commodities, Woodside is a promising ASX stock for investors looking to gain from U.S. inflation dynamics.

Consumer Staples: Woolworths (ASX: WOW) and Coles (ASX: COL)

Consumer staples are another sector that tends to perform well during inflationary periods. Companies like Woolworths and Coles, Australia’s largest supermarket chains, benefit from steady demand for essential goods even when inflation is up. With a bit of inflation in the U.S. and potential rate cuts, these companies’ relatively inelastic products, such as food and household goods, make them attractive to American and global investors seeking stable, income-generating assets.

Additionally, with potential increases in U.S. inflation, some investors may seek to allocate capital towards international consumer staples for diversification, making Woolworths and Coles appealing choices on the ASX.

Financials: Macquarie Group (ASX: MQG)

Financials can offer robust returns during inflationary periods, and Macquarie Group, Australia’s multinational investment bank and financial services company, is no exception. If the U.S. maintains a steady rate-cutting cycle, investors will likely seek global financial stocks that offer a favorable yield, and Macquarie, with its diverse portfolio in asset management, leasing, and investment, could stand out.

Macquarie’s exposure to infrastructure and commodities, which tend to benefit during inflationary periods, provides additional upside. With its strong international presence, including in North America, Macquarie stands to attract capital flows from U.S. investors seeking stable returns outside the U.S. market.

Real Estate: Goodman Group (ASX: GMG)

Inflationary periods often lead to rising real estate prices, as tangible assets typically retain or increase in value. Goodman Group, a global leader in logistics and industrial property, is positioned to benefit from these trends. As inflation picks up, demand for high-quality, income-generating real estate assets remains strong.

Goodman Group’s extensive operations across the U.S., Europe, and Asia make it an appealing ASX stock for investors looking to hedge against inflation. With potential future rate cuts in the U.S. pushing investors to seek high-yielding assets globally, Goodman’s properties could see increased demand, particularly in the logistics sector, which has seen a boom thanks to ongoing e-commerce growth.