Asian stocks gain after Wall St rebounds from inflation jolt

Oct 12, 2022, 10:40 PM | Updated: Oct 13, 2022, 9:37 pm
A person wearing a protective mask walks in front of an electronic stock board showing Japan's Nikk...

A person wearing a protective mask walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Oct. 14, 2022, in Tokyo. Asian stock markets surged Friday after Wall Street rebounded from a slump caused by worse-than-forecast inflation numbers. (AP Photo/Eugene Hoshiko)

(AP Photo/Eugene Hoshiko)

BEIJING (AP) — Asian stock markets surged Friday after Wall Street rebounded from a slump caused by worse-than-forecast inflation numbers.

Japan’s market benchmark soared by an unusually wide margin of 3.4%. Hong Kong gained 3.3% and Shanghai also rose. Benchmark U.S. crude oil rose more than $2 per barrel.

Wall Street’s benchmark S&P 500 index tumbled Thursday after the headline U.S. consumer price index for September rose 8.2% over a year earlier. But the market benchmark quickly rebounded to end up 2.6% for its biggest daily gain in 2 1/2 years.

The “sticker shock” of inflation was “shrugged off,” possibly because traders already expect another sharp interest rate hike from the Federal Reserve next month to cool surging prices, said Vishnu Varathan of Mizuho Bank in a report.

The Fed and central banks in Europe and Asia have raised rates by unusually wide margins this year to contain inflation that is at multi-decade highs. Traders worry they might tip the global economy into recession.

Tokyo’s Nikkei 225 jumped 3.4% to 27,141.18 and the Hang Seng in Hong Kong gained 3.3% to 16,935.67.

The Shanghai Composite Index added 1.7% to 3,067.65 and the Kospi in Seoul rose 2.4% to 2,214.48.

Sydney’s S&P-ASX 200 advanced 1.8% to 6,759.40. New Zealand and Southeast Asian markets also rose.

On Wall Street, the S&P 500 rose to 3,669.91 after a swing of five percentage points from its lowest point during the day.

The Dow Jones Industrial Average rose 2.8% at 30,038.72. The Nasdaq composite climbed 2.2% at 10,649.15.

The U.S. government data showed inflation is spreading more widely across the economy. One component that is closely followed by policy makers and investors accelerated to its hottest level in 40 years.

The CPI was down from August’s 8.3% increase but not as much as expected.

Core inflation, which strips out volatile food and energy costs to show the long-term trend, accelerated to 6.6% from August’s 6.3%. Prices in September rose 0.6% from the previous month.

That appeared likely to reinforce Fed plans for more big rate hikes. Most traders already expected a rise of up to three-quarters of a percentage point, three times its usual margin, at the U.S. central bank’s next meeting in November.

Thursday’s data prompted some investors to expect yet another rate hike of the same size in December.

The yield on the 10-year Treasury, which helps set rates for mortgages and many other loans, rose to 3.96% from 3.90% late Wednesday. Earlier in the day, it topped 4%.

The two-year yield, which moves more on expectations for Fed action, rose to 4.48% from 4.29%. It crossed above 4.50% earlier in the morning.

In energy markets, benchmark U.S. crude rose $2.16 to $89.43 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, gained 19 cents to $94.76 per barrel in London.

The dollar rose to 147.34 yen from Thursday’s 147.17 yen. The euro gained to 97.92 cents from 97.85 cents.

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

AP

Speaker of the House Nancy Pelosi, D-Calif., updates reporters as Congress moves urgently to head o...
Associated Press

Congress votes to avert rail strike amid dire warnings

WASHINGTON (AP) — Legislation to avert what could have been an economically ruinous freight rail strike won final approval in Congress on Thursday as lawmakers responded quickly to President Joe Biden’s call for federal intervention in a long-running labor dispute. The Senate passed a bill to bind rail companies and workers to a proposed settlement […]
19 hours ago
Associated Press

EPA proposes restrictions to block proposed Alaska mine

ANCHORAGE, Alaska (AP) — The U.S. Environmental Protection Agency on Thursday proposed restrictions that would block plans for a copper and gold mine in Alaska’s Bristol Bay region that is home to the world’s largest sockeye salmon run. A statement from the regional EPA office said discharges of dredged or fill material into the waters […]
19 hours ago
President Joe Biden speaks during a news conference with French President Emmanuel Macron in the Ea...
Associated Press

Biden to Dems: Scrap caucuses, promote diversity in primary

WASHINGTON (AP) — President Joe Biden said Thursday that Democrats should give up “restrictive” caucuses and move to champion diversity in the order of their presidential primary calendar, dealing a major blow to Iowa’s decadeslong status as the first voting state. In a letter to the rule-making arm of the Democratic National Committee, Biden does […]
19 hours ago
***HOLD for Story running Wed. Nov. 30, 2022 *** FILE - A family walks over cracked mud near Lake O...
Associated Press

Drought-hit California cities to get little water from state

SACRAMENTO, Calif. (AP) — California water agencies that serve 27 million people will get just 5% of what they requested from the state to start 2023, water officials announced Thursday. The news of limited water comes as California concludes its driest three-year stretch on record and as water managers brace for a fourth year with […]
19 hours ago
FILE - President Joe Biden answers questions with Education Secretary Miguel Cardona as they leave ...
Associated Press

High court to rule on Biden student loan cancellation plan

WASHINGTON (AP) — The Supreme Court agreed Thursday to decide whether the Biden administration can broadly cancel student loans, keeping the program blocked for now but signaling a final answer by early summer. That’s about two months before the newly extended pause on loan repayments is set to expire. The administration had wanted a court […]
19 hours ago
This photo provided by the Oxford (Miss.) Police Department shows Timothy Herrington Jr. Herrington...
Associated Press

Man charged with murder of Ole Miss student released on bond

OXFORD, Miss. (AP) — The man charged with first-degree murder in the case of a University of Mississippi student who has been missing since early July was released on a $250,000 bond Thursday. Sheldon Timothy Herrington Jr., 22, faces a murder charge for the suspected killing of 20-year-old Jimmie “Jay” Lee, whose body has yet […]
19 hours ago

Sponsored Articles

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

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
Asian stocks gain after Wall St rebounds from inflation jolt