By ELAINE KURTENBACH, AP Business Writer
Shares mixed in Asia on Wednesday with Chinese benchmarks pushing higher after a rally of technology companies helped reverse much of an early slide on Wall Street.
Hong Kong’s Hang Seng rose 1.7% to 19,967.25 and the Shanghai Composite index rose 1.5% to 3,082.50.
That follows the release of data showing inflation at 2.1% in April in the annual term, up 0.4% in the previous quarter.
The surge in inflation has prompted central banks and governments in many countries to withhold the support provided by markets and businesses during the height of the pandemic.
The moderation of China’s price increase has raised expectations that authorities will opt for more stimulus spending to curb the impact of closures in many major cities to counter coronavirus outbreaks.
“In the context of the inflation scene elsewhere in the world, China is in a sweet spot right now, markets are now pricing that it gives the Chinese government room to release some juicy stimulus. , “Jeffrey Halley of Oanda said in a comment.
Tokyo’s Nikkei 225 added 0.2% to 26,213.64, while the S & P/ASX 200 rose 0.1% to 7,057.40. In Seoul, Kospi declined 0.1% to 2,594.43.
Investors are waiting for the release later Wednesday of the Labor Department’s report on consumer prices for April. On Thursday, it will release a report on producer prices, or wholesale prices that affect businesses, for April.
Such data influences the Federal Reserve’s strategy on interest rates and other monetary policy. The concern is that aggressive action to lower inflation could cause the economy to shrink.
“Some wait-and-see is mostly in place, as participants avoid taking excessive risks while waiting to see how the markets will react to the expected decline in the US CPI-the first of seven months, “Jun Rong Yeap of IG said in a comment.
Stocks ended up mixed on Wall Street on Tuesday after a rally of technology companies helped turn most of an early slide.
The S&P 500 resulted 0.2% higher at 4,001.05 after giving the majority an early gain of 1.9%. The Dow Jones Industrial Average fell 0.3% to 32,160.74.
The Nasdaq composite rose 1% to 11,737.67.
Large technology stocks, which have been declining sharply and declining recently, have accounted for most of the turnover in the S&P 500. Apple is up 2.2% and Microsoft is up 2.2%.
Communication gains and healthcare stocks also helped boost the market, which outpaced declines in the financial, real estate and other sectors.
Bond yields are mixed. The 10 -year Treasury yield fell 2.99% from 3.08% on Monday.
Treasury yields have been rising and stocks have been very fast recently as Wall Street has adjusted central bank measures to raise interest rates from historic lows to combat continued rising inflation, which is at its highest level in four decades.
The central bank raised the benchmark rate from almost zero, where it sits with most of the coronavirus pandemics. Last week, it was shown to double the size of the future increase.
Higher prices of raw materials, shipping and labor cut corporate financial results and forecasts. Many companies are raising prices on everything from clothing to food, raising concerns that consumers will eventually cut spending, hurting economic growth.
Russia’s continued invasion of Ukraine has only added to concerns about rising inflation. The conflict has pushed already high oil and natural gas prices even higher, while putting further pressure on costs for key food commodities such as wheat, Wheat prices have risen more than 40 % for the year.
U.S. crude prices rose about 36% in 2022. The U.S. benchmark gained $ 2.33 to $ 102.09 per barrel on Wednesday in electronic trading on the New York Mercantile Exchange. It fell 3.2% on Tuesday.
Brent crude, the international benchmark of oil pricing, jumped $ 2.45 to $ 104.91 per barrel.
In currency deals, the dollar fell to 130.33 Japanese yen from 130.43 yen. The euro rose $ 1.0541 from $ 1.0532.
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