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

FILE - Florida Gov. Ron DeSantis speaks after being sworn in to begin his second term during an ina...
Associated Press

Florida lawmakers to meet next week on Disney, immigration

TALLAHASSEE, Fla. (AP) — Florida lawmakers will meet next week to complete a state takeover of Walt Disney World’s self-governing district and debate proposals on immigration and election crimes, as Republican Gov. Ron DeSantis continues to leverage national political fissures ahead of an expected White House run. Republican leaders of the Legislature, in coordination with […]
18 hours ago
FILE - Johnny Thai, 11, receives the Pfizer COVID-19 vaccine at a pediatric vaccine clinic for chil...
Associated Press

California won’t require COVID vaccine to attend schools

SACRAMENTO, Calif. (AP) — California won’t make children get the coronavirus vaccine to attend schools, state public health officials said Friday, reversing a state policy first announced by Gov. Gavin Newsom in 2021. The nation’s most populous state plans to formally end its coronavirus emergency order on Feb. 28, ending some of Newsom’s authority to […]
18 hours ago
Associated Press

Feds say cyberattack caused suicide helpline’s outage

WASHINGTON (AP) — A cyberattack caused a nearly daylong outage of the nation’s new 988 mental health helpline late last year, federal officials told The Associated Press Friday. Lawmakers are now calling for the federal agency that oversees the program to prevent future attacks. “On December 1, the voice calling functionality of the 988 Lifeline […]
18 hours ago
FILE - Workers at the Nissan plant in Smyrna, Tenn., walk by a Nissan Altima sedan on May 15, 2012....
Associated Press

US board clears path for mini-union vote at big Nissan plant

NASHVILLE, Tenn. (AP) — Fewer than 100 employees out of the thousands who work at Nissan’s auto assembly plant in Tennessee can hold a vote on whether to form a small union, the federal labor board has decided. The ruling Thursday by the National Labor Relations Board overturns a June 2021 decision by one of […]
18 hours ago
A person gambles as betting odds for NFL football's Super Bowl are displayed on monitors at the Cir...
Associated Press

Super Bowl prop betting increasing in popularity

LAS VEGAS (AP) — Jay Kornegay was behind the counter in 2004 when someone approached with $5,000 to bet on the Super Bowl but had no idea how to decide. The man, not a regular sports bettor, thought for a few moments and decided to put it all on the Carolina Panthers to score exactly […]
18 hours ago
Associated Press

Ford, Starbucks fall; Clorox, Gilead Sciences rise

NEW YORK (AP) — Stocks that traded heavily or had substantial price changes Friday: Ford Motor Co., down $1.09 to $13.12. The automaker reported disappointing fourth-quarter earnings and said its costs are too high. Amazon.com Inc., down $9.52 to $103.39. The online retail giant’s fourth-quarter profit slumped and missed analysts’ forecasts. Alphabet Inc., down $2.96 […]
18 hours ago

Sponsored Articles

...
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.
...
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.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
Asian stocks follow Wall St higher after UK calms markets