Asian stocks rise after Wall Street recovers from inflation shock

Asian stock markets soared on Friday wall street It recovered from a slump caused by lower-than-expected inflation.

Japanmarket benchmark jumped 3.5%. Hong Kong rose 3.9%, Shanghai has also risen. Benchmark US crude rose $2 a barrel. US futures also rose significantly.

Wall Street’s benchmark S&P 500 index fell on Thursday after the US consumer price index rose 8.2% in September. However, market benchmarks quickly rebounded, ultimately taking him to 2.6%, the biggest daily gain in two-and-a-half years.

Mizuho Bank’s Vishnu Varasan said in a note that the “sticker shock” of inflation was “disrespected.”

The Federal Reserve (Fed) and central banks in Europe and Asia have raised interest rates by unusually wide margins this year in an effort to curb inflation at its highest level in decades. Traders fear the global economy could slip into recession.

Tokyo’s Nikkei 225 jumped to 27,161.46 while Hong Kong’s Hang Seng rose to 117,020.15.

The Shanghai Composite Index rose 2.2% to 3,083.76 while Seoul’s Kospi rose 2.3% to 2,212.78.

Sydney’s S&P-ASX 200 rose 1.8% to 6,758.80 and India’s Sensex rose 1.7% to 58,234.62. Markets in New Zealand and Southeast Asia also rose.

On Wall Street, the S&P 500 rose to 3,669.91 on Thursday, a 5% move from its intraday low.

The Dow Jones Industrial Average rose 2.8% to 30,038.72. The Nasdaq Composite was up 2.2% at 10,649.15.

Also on Friday, China reported that consumer inflation rose to a 29-month high of 2.8% in September from 2.5% the previous month. This is below the official limit of 3%, Beijing There is room to stimulate weaker economic growth.

US government data on Thursday showed that inflation was more widespread across the economy. One factor that policymakers and investors have been paying attention to has accelerated to the hottest levels in 40 years.

The consumer price index has eased from August’s 8.3% rise, but not as much as expected.

Core inflation, which strips out volatile food and energy costs to show longer-term trends, accelerated to 6.6% from 6.3% in August. September prices were up 0.6% from the previous month.

This seems likely to reinforce the Fed’s plans for even more significant rate hikes. Most traders had already expected a rise of up to three-quarters of a percentage point, three times his normal margin, at the next U.S. central bank meeting in November.

Thursday’s data has led some investors to expect another rate hike of the same magnitude in December.

Yields on 10-year Treasuries, which help set rates on mortgages and many other loans, rose to 3.96% from 3.90% late Wednesday. Earlier in the day it topped 4%.

The 2-year yield, driven by expectations of Federal Reserve (Fed) action, climbed to 4.48% from 4.29%. In the early morning he exceeded 4.50%.

In the energy market, US benchmark crude rose $2.11 to $89.38 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used for international crude pricing, rose 22 cents to $94.79 a barrel in London.

The dollar rose to 147.46 from 147.17 on Thursday. It is trading at the highest price in 32 years. The euro fell from 97.85 cents to 97.77 cents.