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.


Lead water pipes pulled from underneath the street are seen in Newark, N.J., Oct. 21, 2021. (AP Pho...

Associated Press

Biden to require cities to replace harmful lead pipes within 10 years

The Biden administration has previously said it wants all of the nation's roughly 9 million lead pipes to be removed, and rapidly.

14 hours ago

Dignitaries, including U.S. Secretary of the Interior Deb Haaland, center, break ground on the new ...

Associated Press

Work resumes on $10B renewable energy transmission project in southwestern Arizona despite tribal objections

Federal land managers briefly halted work on the SunZia transmission line earlier this month after Native American tribes raised concerns.

15 hours ago

Facebook's Meta logo sign is seen at the company headquarters in Menlo Park, Calif., on, Oct. 28, 2...

Associated Press

Meta shuts down thousands of fake Facebook accounts that were primed to polarize voters ahead of 2024

Meta said it removed 4789 Facebook accounts in China that targeted the United States before next year’s election.

16 hours ago

A demonstrator in Tel Aviv holds a sign calling for a cease-fire in the Hamas-Israel war on Nov. 21...

Associated Press

Hamas releases a third group of hostages as part of truce, and says it will seek to extend the deal

The fragile cease-fire between Israel and Hamas was back on track Sunday as the first American was released under a four-day truce.

5 days ago

Men look over the site of a deadly explosion at Al-Ahli Hospital in Gaza City, Wednesday, Oct. 18, ...

Associated Press

New AP analysis of last month’s deadly Gaza hospital explosion rules out widely cited video

The Associated Press is publishing an updated visual analysis of the deadly Oct. 17 explosion at Gaza's Al-Ahli Hospital.

9 days ago

Peggy Simpson holds a photograph of law enforcement carrying Lee Harvey Oswald's gun through a hall...

Associated Press

JFK assassination remembered 60 years later by surviving witnesses to history, including AP reporter

Peggy Simpson is among the last surviving witnesses who are sharing their stories as the nation marks the 60th anniversary.

9 days ago

Sponsored Articles

Follow @KTAR923...

West Hunsaker at Morris Hall supports Make-A-Wish Foundation in Arizona

KTAR's Community Spotlight this month focuses on Morris Hall and its commitment to supporting the Make-A-Wish Foundation in Arizona.


Desert Institute for Spine Care

Desert Institute for Spine Care (DISC) wants to help Valley residents address back, neck issues through awake spine surgery

As the weather begins to change, those with back issues can no longer rely on the dry heat to aid their backs. That's where DISC comes in.


Midwestern University

Midwestern University: innovating Arizona health care education

Midwestern University’s Glendale Campus near Loop 101 and 59th Avenue is an established leader in health care education and one of Arizona’s largest and most valuable health care resources.

Asian stocks gain after Wall St rebounds from inflation jolt