Asian stocks rise after Wall St breaks string of declines

May 29, 2022, 9:01 PM | Updated: 9:26 pm

BEIJING (AP) — Asian stocks rose Monday after Wall Street rebounded from a seven-week string of declines and China eased anti-virus curbs on business activity in Shanghai and Beijing.

Shanghai, Tokyo, Hong Kong and Sydney advanced. Oil rose more than $1 per barrel to stay above $110.

On Wall Street, the benchmark S&P 500 index finished Friday up 6.6% for its biggest weekly gain in 18 months after surging inflation declined in April. U.S. markets will be closed Monday for a holiday.

“Markets rallied into the long weekend, providing a positive tone at the start of this week,” said ING economists in a report.

The Shanghai Composite Index advanced 0.6% to 3,148.16 after the Chinese government allowed more factories and shops in Beijing and Shanghai to reopen. Shanghai, the country’s commercial capital, announced tax breaks and subsidies to help businesses recover from a two-month shutdown.

The Nikkei 225 in Tokyo surged 2% to 27,309.35 and the Hang Seng in Hong Kong gained 2% to 21,122.91. The Kospi in Seoul advanced 1.2% to 2,669.09.

Sydney’s S&P-ASX 200 was 0.9% higher at 7,248.40. New Zealand and Singapore gained while Jakarta retreated.

On Wall Street, the S&P 500 rose 2.5% on Friday to 4,158.24, propelled by gains for tech companies.

Investors were relieved after Commerce Department data showed U.S. inflation, which has prompted the Federal Reserve to raise interest rates, decelerated to 6.3% over a year earlier in April, its first decline in 17 months.

Markets are worried about whether the Fed can control inflation that is running at a four-decade high without tipping the biggest global economy into recession.

The Dow Jones Industrial Average rose 1.8% to 33,212.96. The Nasdaq, dominated by tech stocks, gained 3.3% to 12,131.13.

The U.S. market has been in a slump for the past two months over fears about interest rate hikes that might slow economic activity, and the impact of Russia’s war on Ukraine and a Chinese economic slowdown.

Crude oil prices are up nearly 60% this year due to fears about disruptions in supplies from Russia, the second-biggest global exporter. Wheat prices are up about 50% and corn prices are up 30%.

Disruptions in manufacturing and trade due to China’s shutdown of Shanghai and other industrial cities to fight virus outbreaks also have added to inflation pressures.

More factories, shops and other businesses are allowed to reopen this week in Shanghai and in the Chinese capital, Beijing, after authorities declared outbreaks under control. The Shanghai city government promised rent and tax cuts, faster approvals for construction projects and more subsidies for electric car purchases.

In energy markets, benchmark U.S. crude rose $1.15 to $116.22 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price basis for international oils, advanced $1.16 to $116.72 per barrel in London.

The dollar declined to 126.98 yen from Friday’s 127.10 yen. The euro rose to $1.0744 from $1.0733.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Protesters stand outside of the Senate chamber at the Indiana Statehouse on Feb. 22, 2023, i...

Associated Press

LGBTQ+ Americans are under attack, Human Rights Campaign declares in state of emergency warning

The Human Rights Campaign declared a state of emergency for LGBTQ+ people in the U.S. on Tuesday.

19 hours ago

FILE - People wait in line outside the Supreme Court in Washington to listen to oral arguments in a...

Associated Press

Supreme Court opened the door to states’ voting restrictions. Now a new ruling could widen them.

Within hours of a U.S. Supreme Court decision dismantling a key provision of the Voting Rights Act, Texas lawmakers announced plans to implement a strict voter ID law that had been blocked by a federal court. Lawmakers in Alabama said they would press forward with a similar law that had been on hold.

19 hours ago

Gavel (Pexels Photo)...

Associated Press

Ex-teacher sentenced to prison for making death threat against Arizona legislator

A former Tucson middle school teacher was sentenced Tuesday to 2 ½ years in prison after pleading guilty to making a death threat against Arizona state Sen. Wendy Rogers.

19 hours ago

FILE - Police officers stand outside a Target store as a group of people protest across the street,...

Associated Press

Pride becomes a minefield for big companies, but many continue their support

Many big companies, including Target and Bud Light's parent, are still backing Pride events in June despite the minefield that the monthlong celebration has become for some of them.

2 days ago

FILE - Then-Democratic presidential candidate Joe Biden plays music on a phone as he arrives to spe...

Associated Press

Biden, looking to shore up Hispanic support, faces pressure to get 2024 outreach details right

Joe Biden vowed in 2020 to work “like the devil” to energize Hispanic voters, and flew to Florida seven weeks before Election Day to do just that.

2 days ago

Editorial members of the Austin American-Statesman's Austin NewsGuild picket along the Congress Ave...

Associated Press

Correction: US-Gannett Walkout story

Journalists at two dozen local newspapers across the U.S. walked off the job Monday to demand an end to painful cost-cutting measures and a change of leadership at Gannett, the country's biggest newspaper chain.

2 days ago

Sponsored Articles

(Desert Institute for Spine Care in Arizona Photo)...

Desert Institute for Spine Care in Arizona

5 common causes for chronic neck pain

Neck pain can debilitate one’s daily routine, yet 80% of people experience it in their lives and 20%-50% deal with it annually.

(Photo by Michael Matthey/picture alliance via Getty Images)...

Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.

...

Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

Asian stocks rise after Wall St breaks string of declines