AP

Asian stocks gain after Wall St rebounds from inflation jolt

Oct 12, 2022, 10:40 PM | Updated: Oct 13, 2022, 9:37 pm

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

The U.S. Supreme Court is seen, Thursday, Feb. 8, 2024, in Washington. The U.S. Supreme Court has h...

Associated Press

Supreme Court decision on Trump’s election status could come Monday morning

A SCOTUS decision could come Monday in the case about whether Trump can be kicked off the ballot over his efforts to undo his 2020 defeat.

10 hours ago

Republican presidential candidate former UN Ambassador Nikki Haley poses for a selfie after speakin...

Associated Press

Nikki Haley wins D.C. Republican primary, her first 2024 victory

Nikki Haley has won the Republican primary in the District of Columbia, notching her first victory of the 2024 campaign.

10 hours ago

An Apache group that has fought to protect land it considers sacred from a copper mining project in...

Associated Press

A US appeals court ruling could allow mine development in central Arizona on land sacred to Apaches

An Apache group that has fought to protect land from a copper mining project in central Arizona suffered a significant blow.

15 hours ago

On Friday, March 1, 2024, the U.S. Food and Drug Administration said yogurt sold in the U.S. can ma...

Associated Press

Eating yogurt may reduce risk of type 2 diabetes, FDA says

Eating at least two cups of yogurt a week might reduce the risk of type 2 diabetes, the U.S. Food and Drug Administration said.

17 hours ago

Arizona will not approve new housing construction on the fast-growing edges of metro Phoenix that r...

Associated Press

Arizona Senate passes plan to manage rural groundwater, but final success is uncertain

A plan to manage rural groundwater passed the Arizona Senate amid concerns about the availability of sufficient water for future generations.

3 days ago

A woman pauses while shopping at a Kohl's store in Clifton, N.J., Jan. 26, 2024. On Thursday, Feb. ...

Associated Press

Federal Reserve’s preferred inflation gauge picked up last month in sign of still-elevated prices

An inflation gauge favored by the Federal Reserve increased in January, the latest sign that the slowdown in U.S. consumer price increases is occurring unevenly from month to month.

3 days ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

Asian stocks gain after Wall St rebounds from inflation jolt