Asian markets rally as investors await US inflation data

BEIJING – Asian stock markets watched the gains on Wall Street on Thursday as investors waited for US inflation data that could influence the Federal Reserve’s decision on when to phase out economic stimulus.

Shanghai SHCOMP Composite Index,
+ 1.08%
rose 1% after producer price inflation fell to 12.9% a year earlier from 13.5% in October due to falling prices for coal and metals. Consumer inflation exceeded 2% for the first time in more than a year due to a 1.6% rise in food prices.

Nikkei 225 NIK,
in Tokyo lost 0.2%, while Hang Seng HSI,
+ 1.01%
in Hong Kong rose 0.9%. Kospi 180721,
+ 0.61%
in Seoul added 0.4%.

S & P / ASX 200 XJO Index,
in Sydney added less than 0.1%. Singapore STIs are up slightly
+ 0.28%
and Indonesia JAKIDX,
+ 0.12%,
and were in about Taiwanese Y9999,
+ 0.46%

China on Thursday reported that inflation in prices paid by factories for components and raw materials fell in November from a 25-year high the previous month. This is viewed by traders as a possible guide to US inflation due to China’s role as a global manufacturing hub.

Wall Street rallied for a third day on Wednesday as concerns over the omicron variant of the coronavirus eased.

Traders were awaiting the release of Friday’s November US consumer inflation report to see if the Federal Reserve would feel more pressure to bring prices down on a pullback in stimulus that drives up stock prices.

Fed officials will meet next week for the last time in 2021. They previously said they were ready to act if necessary after inflation hit a 30-year high of 6.2% in October.

“Friday’s inflation data will undoubtedly be central to Fed leaders,” Matt Weller of StoneX Financial said in a report. The headline is expected to “grow even more.”

On Wall Street, the benchmark S&P 500 SPX,
+ 0.31%
increased by 0.3% to 4,701.21. This is 25.2% more per year. About 62% of the shares in the index were up.

Dow Jones Industrial Average DJIA,
+ 0.10%
added 0.1% to 35,754.75. Composite COMP Nasdaq,
+ 0.64%
increased by 0.6% to 15,786.99.

Markets slipped over the previous two weeks on fears of inflation and the omicron option. Stocks have stabilized after White House chief medical adviser Dr. Anthony Fauci said on Monday that early signs indicate it may be less dangerous than the earlier delta.

In energy markets, compare to US crude oil CLF22,
+ 0.87%
in electronic trading on the New York Mercantile Exchange, the price rose 77 cents to $ 73.13 a barrel. The contract rose 31 cents to $ 72.36 on Wednesday. Brent crude oil BRNG22,
+ 0.67%,
benchmark prices for world oils rose 70 cents to $ 76.52 a barrel in London. In the previous session, the price rose 38 cents to $ 75.82.

USDJPY dollar,
rose to 113.75 yen from 113.67 yen on Wednesday.

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