Asian stocks follow Wall St higher as inflation fears subside | Economic news
By JOE McDONALD, AP Business Writer
BEIJING (AP) – Asian equity markets followed Wall Street’s rise on Tuesday as inflation fears eased and investors regained risk appetite. The market references in Shanghai, Tokyo, Hong Kong and Seoul have progressed.
Overnight, the Wall Street S&P 500 benchmark rose 1%, recouping about half of last week’s losses. The gains were led by technology stocks.
Investors fear that a global economic recovery will be hampered if rising inflation prompts governments and central banks to withdraw stimulus measures. But a Federal Reserve official helped allay some of those fears when he said on Tuesday that the US central bank should not consider changing policy amid the coronavirus pandemic.
“US markets gave a positive start to the week as easing inflation fears lead to a rebound in technology,” IG’s Yeap Jun Rong said in a report.
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The Shanghai Composite Index rose 1.8% to 3,558.89 while the Nikkei 225 in Tokyo gained 0.5% to 28,501.74. The Hang Seng in Hong Kong rose 1.4% to 28,802.71.
The Kospi in Seoul was 0.6% at 3,162.70 and the S & P-ASX 200 in Sydney added 0.6% at 7,090.90.
India Sensex opened 0.2% more to 50,738.86. New Zealand retreated while Southeast Asian markets advanced.
Shares fell after hitting an all-time high on May 7 amid growing concern that rising inflation as stimulating economies disrupt trade or prompt governments to cut stimulus spending and ease the process. credit.
St. Louis Federal Reserve Chairman James Bullard told Yahoo Finance on Monday that an increase in inflation was “not much of a surprise” and that it was not time to rethink the Monetary Policy.
Fed officials said earlier that the US economy would be allowed to “heat up,” with inflation above the central bank’s 2% target, to ensure a recovery is established.
“I think there will come a time when we can talk more about changing the parameters of monetary policy,” Bullard said. “I don’t think we should be doing it while we are still in the pandemic.”
The S&P 500 rose to 4,197.05. The index is now on track for a monthly gain of 0.4% as the last season of quarterly earnings reporting draws to a close.
The Dow Jones Industrial Average added 0.5% to 34,393.98. The highly technological Nasdaq composite gained 1.4% to 13,661.17.
Nvidia rose 4.1%, while Micron Technology added 2.7%. Among communications actions, Facebook gained 2.7% and Twitter jumped 4.8%.
Firms that depend on direct consumer spending have made solid gains, while sectors seen as safe havens such as utilities have fallen behind.
Bond yields, or the difference between the market price and the payment at maturity, declined as prices rose. This is often taken as a sign that investors are less concerned about inflation, which can erode the value of that payment.
On Friday, the Commerce Department released one of its inflation gauges, the Consumer and Personal Expenditure Index, or Core PCE. The Fed prefers this tool to measure inflation, rather than the consumer price index released earlier in the month.
Economists polled by FactSet expect Core PCE to be up 3% from a year ago, which would be above the Fed’s target.
In energy markets, benchmark US crude gained 8 cents to $ 66.13 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose from $ 2.47 to $ 66.05 on Monday. Brent, the base of international oil prices, gained 12 cents to $ 68.49 a barrel in London. He added $ 2.02 the previous session to $ 68.46.
The dollar fell to 108.74 yen from 108.79 yen on Monday. The euro rose to $ 1.2230 from $ 1.2213.
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