Asian stocks rise as Wall Street tech gain bolsters optimism
Asian stocks were mostly higher on Thursday, following an overnight rally on Wall Street as investors sought bargains, including tech stocks.
Benchmarks rose in Tokyo, Seoul and Sydney in morning trading. Hong Kong markets have been closed for a holiday.
The Shanghai Composite Index was little changed, at 3,560.14, after the government reported spike in producer price inflation, which hit a record 10.7% in September, from 9. 5% in August.
Much of the increase is due to soaring coal prices, which do not appear to have fueled consumer prices even though parts of the country are struggling with power shortages, Capital Economics said in a report. Consumer price inflation slipped to 0.7% from 0.8% in August.
Also on Thursday, the Monetary Authority of Singapore raised a benchmark interest rate, citing price pressure. The decision to allow the Singapore dollar to appreciate slightly against the US dollar, widening the trading band by 0%, coincided with the announcement of an annual growth of the city-state economy of 6 , 5% in July-September.
Japan’s benchmark Nikkei 225 rose 1.0% in morning trading to 28,425.90 as its new prime minister, Fumio Kishida, prepared to dissolve parliament ahead of the October 31 general election.
South Korea’s Kospi jumped 1.1% to 2,975.65. The Australian S & P / ASX 200 jumped 1.0% to 7,346.50. Hong Kong trade was closed for a public holiday.
“Asian stocks rose on Thursday, following a positive move from Wall Street where the tech and growth sectors outperformed,” said Anderson Alves of ActivTrades.
On Wednesday, the S&P 500 rose 0.3% to 4,363.80. The Dow finished flat, slipping 0.53 points to 34,377.81. The tech-rich Nasdaq gained 0.7% to 14,571.64. Small business shares also rose. The Russell 2000 Index added 0.3% to 2,241.97.
Most of the 11 sectors of the S&P 500 rose, with technology and communications accounting for a large share of the gains. A mix of businesses that rely on consumer spending has also helped lift the market. Financial and energy companies have fallen.
Investors got a better idea of the US Federal Reserve’s next policy actions after the central bank released the minutes of its policymakers’ meeting last month.
“You start to have a framework for how they’re going to go about it, and the market is really desperate for some clarity,” he said. “At least we’re starting to see the game plan,” said JJ Kinahan, chief strategist at TD Ameritrade.
Fed officials agreed at their last meeting that if the economy continues to improve, they could start cutting their monthly bond purchases as early as next month and end them by mid-2022.
Banks were among the heaviest in the market. JPMorgan Chase fell 2.6% after its latest results showed the bank struggled to increase revenue with interest rates near zero. Falling bond yields have also hurt, as lenders rely on higher yields to charge more lucrative interest on loans. American Express fell 3.5% and Capital One Financial fell 3.3%.
Delta Air Lines slipped 5.8% for the biggest decline in the S&P 500 after warning that rising fuel prices would test its ability to remain profitable. It also provides for higher labor costs. United Airlines fell 3.9% and American Airlines slipped 3.3%.
Investors took the latest inflation update in stride. Consumer prices rose 5.4% in September from a year earlier, matching the highest rate since 2008. This was slightly higher than economists expected. Many companies face supply chain disruptions and delays amid increasing demand for goods, and warn that this will increase costs and reduce their bottom line.
“There is a lot of nervousness and anxiety about inflation right now,” said Kristina Hooper, chief global markets strategist at Invesco. re in it.
As companies raise prices to offset rising shipping and raw material costs, analysts fear higher prices could dampen consumer spending, the main engine of economic growth. The latest report from the Ministry of Labor showed that the costs of new cars, food, gasoline and dining out all jumped in September.
Investors will get more data on US consumer spending on Friday when the Commerce Department releases retail sales for September.
In energy trading, benchmark US crude edged up 2 cents to $ 80.46 a barrel in electronic trading on the New York Mercantile Exchange. He lost 20 cents to $ 80.44 on Wednesday. Brent crude, the international standard, rose 5 cents to $ 83.23 a barrel.
In currency trading, the US dollar rose from 113.28 yen to 113.50 Japanese yen. The euro cost $ 1.1595, compared to $ 1.1593.
AP Business Writers Damian J. Troise and Alex Veiga contributed.
Yuri Kageyama is on Twitter https://twitter.com/yurikageyama