Asian stocks follow Wall St higher after UK calms markets

Sep 27, 2022, 11:10 PM | Updated: Sep 28, 2022, 9:25 pm
A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headqu...

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Sept. 29, 2022. Asian stock markets have followed Wall Street higher after Britain’s central bank moved forcefully to stop a budding financial crisis. (AP Photo/Ahn Young-joon)

(AP Photo/Ahn Young-joon)

BEIJING (AP) — Asian stock markets followed Wall Street higher Thursday after Britain’s central bank moved forcefully to stop a budding financial crisis.

Market benchmarks in Hong Kong, Seoul and Sydney added more than 1%. Shanghai and Tokyo also rose. Oil prices edged lower after jumping by more than $3 per barrel the previous day.

Wall Street’s benchmark S&P 500 index surged 2% on Wednesday for its biggest gain in seven weeks after the Bank of England announced it would buy as many government bonds as needed to restore order to financial markets.

That helped to calm investor fears that planned British tax cuts would push up already high inflation. That had caused the value of the British pound to fall to its lowest level since the 1970s and bond prices to plunge.

The Shanghai Composite Index rose 0.8% to 3,068.87 and the Nikkei 225 in Tokyo gained 0.6% to 26,341.76. The Hang Seng in Hong Kong jumped 1.3% to 17,477.97.

The Kospi in Seoul gained 1.1% to 2,193.82 and Sydney’s S&P ASX 200 rose 1.6% to 6,566.80.

New Zealand and Southeast Asian markets also advanced.

On Wall Street, the S&P 500 rose to 3,719.04 after the Bank of England said it would buy bonds over the next two weeks to stop a slide in prices. Investors were rattled by plans for 45 billion pounds ($48 billion) of tax cuts with no spending reductions.

The central bank earlier warned crumbling confidence in the economy posed a “material risk to U.K. financial stability.” The International Monetary Fund took the rare step of urging a member of the Group of Seven advanced economies to abandon its plan for tax cuts and more borrowing.

The Dow Jones Industrial Average rallied 1.9% to 29,683.74. The Nasdaq composite climbed 2.1% to 11,051.64.

Despite Wednesday’s gain, the S&P 500 is down more than 20% from its Jan. 3 record, which puts it in what traders call a bear market.

Forecasters see more turbulence ahead due to worries about a possible recession, higher interest rates and even higher inflation.

The yield on the 10-year U.S. Treasury, or the difference between its market price and the payout if held to maturity, briefly exceeded 4% on Wednesday, its highest level in a decade.

Investor fears are growing that aggressive interest rate hikes this year by the Federal Reserve and central banks in Europe and Asia to cool inflation that is at multi-decade highs might tip the global economy into recession.

The investment giant Vanguard puts the chance of a U.S. recession at 25% this year and at 65% next year if the Fed follows through on expectations it will raise rates again and keep them elevated through next year.

In energy markets, benchmark U.S. crude lost 32 cents to $81.83 per barrel in electronic trading on the New York Mercantile Exchange. The contract surged $3.65 on Wednesday to $82.15. Brent crude, the price basis for international oils, shed 30 cents to $87.75 per barrel in London. It gained $3.05 the previous session to $89.32.

The dollar gained to 144.32 yen from Wednesday’s 143.96 yen. The euro declined to 96.82 cents from 97.43 cents.

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

AP

Sheree Perry of Virginia Beach, center, prays with chaplains at a memorial on Friday, Nov. 25, 2022...
Associated Press

City to hold vigil honoring those killed in Walmart shooting

CHESAPEAKE, Va. (AP) — The city of Chesapeake, Virginia, has scheduled a candlelight vigil for Monday evening that will honor and remember the victims of last week’s mass shooting at a Walmart store. Six employees were killed and six people were wounded by a store supervisor late Tuesday night in the city of about 250,000 […]
1 day ago
Associated Press

Pakistan launches new anti-polio drive amid spike in cases

ISLAMABAD (AP) — Pakistani authorities launched a new nationwide anti-polio drive on Monday amid a spike in new cases among children, health officials said. It is the sixth such campaign this year and will last for five days, aiming to inoculate children under the age of 5 in high-risk areas. The newest drive was aimed […]
1 day ago
FILE - Payton Gendron is led into the courtroom for a hearing at Erie County Court in Buffalo, N.Y....
Associated Press

Lawyers: Buffalo supermarket gunman plans to plead guilty

BUFFALO, N.Y. (AP) — A white gunman who targeted a Buffalo supermarket in a predominantly Black neighborhood plans to plead guilty on Monday to killing 10 people and wounding three others, according to lawyers representing victims’ relatives. Payton Gendron, 19, is scheduled to appear in Erie County Court for a hearing that was postponed for […]
1 day ago
FILE - An election worker verifies a ballot on a screen inside the Maricopa County Recorders Office...
Associated Press

Arizona counties face deadline to certify 2022 election

PHOENIX (AP) — Six Arizona counties must decide Monday whether to certify 2022 election results amid pressure from some Republicans not to officially approve a vote count that had Democrats winning for U.S. Senate, governor and other statewide races. Election results have largely been certified without issue in jurisdictions across the country. That’s not been […]
1 day ago
FILE - House Minority Leader Kevin McCarthy of Calif. speaks at a news conference on Capitol Hill i...
Associated Press

McCarthy’s pursuit of speaker’s gavel comes at a high cost

WASHINGTON (AP) — Republican leader Kevin McCarthy is in the fight of his political life, grinding through the promises and proposals, cajoling and deal-making necessary to win over reluctant colleagues whose support he needs to become House speaker. Every new commitment from McCarthy can be seen as a potentially strategic move, intended to quell skeptics […]
1 day ago
FILE - Britain's Prince William and Kate, Duchess of Cambridge visit the Church on the Street in Bu...
Associated Press

Sibling unease dogs Prince William’s ‘Earthshot’ US trip

LONDON (AP) — Prince William and the Princess of Wales will be looking to focus attention on their Earthshot Prize for environmental innovators when they make their first visit to the U.S. in eight years this week, a trip likely to be dogged by tensions with Prince Harry and his wife, Meghan, who have criticized […]
1 day ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Prep the plumbing in your home just in time for the holidays

With the holidays approaching, it's important to know when your home is in need of heating and plumbing updates before more guests start to come around.
...
Quantum Fiber

Stream 4K and more with powerful, high-speed fiber internet

Picking which streaming services to subscribe to are difficult choices, and there is no room for internet that cannot handle increased demands.
...
SCHWARTZ LASER EYE CENTER

Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.
Asian stocks follow Wall St higher after UK calms markets