Asian stock markets have followed Wall Street higher as hopes increased that the Federal Reserve might ease off plans for interest rate hikes and Britain installed its third prime minister this year
Asian stock markets followed Wall Street higher on Wednesday as hopes rose that the Federal Reserve might ease off plans for interest rate hikes and Britain installed its third prime minister this year.
Shanghai, Tokyo, Hong Kong and Sydney gained. Oil prices declined.
Wall Street’s benchmark S&P 500 index rose for the third day after bond prices rose, suggesting some investors expect the Fed to ease off rate hikes as economic activity cools.
Traders see weaker U.S. housing prices and other data as support for a “dial back” of Fed plans at its December meeting, said Vishnu Varathan of Mizuho Bank in a report.
The new British prime minister, Rishi Sunak, warned Tuesday of a “profound economic crisis,” but his arrival appeared to reassure rattled markets. The battered pound edged higher against the U.S. dollar.
The Shanghai Composite Index rose 1.4% to 3,018.59.
The Nikkei 225 in Tokyo jumped 2.4% to 15,531.83 ahead of the expected release of a stimulus package this week that reportedly could exceed 20 trillion yen ($140 billion).
The Hang Seng in Hong Kong advanced 1.1% to 27,558.75.
Sydney’s S&P-ASX 200 rose 0.1% to 6,807 after the government reported Australian inflation rose to 7.3% in the three months ending in September.
The Kospi in Seoul added 0.9% to 2,255.48. New Zealand and Southeast Asian markets rose.
On Wall Street, the S&P 500 gained 1.6% 3,859.11. The Dow Jones Industrial Average rose 1.1% to 31,836.74. The Nasdaq advanced 2.3% to 11,199.12.
Tech stocks, retailers and communication companies were among the biggest drivers.
Investors are looking at corporate results to see how inflation which is at multidecade highs is affecting consumer spending.
General Motors rose 3.6% after delivering solid results. United Parcel Service slipped 0.3% after the package delivery service beat earnings and revenue forecasts.
The yield on the 10-year Treasury, which influences mortgage rates, slipped to 4.09% from 4.23% late Monday. The yield on the two-year Treasury, which tracks Federal Reserve action, fell to 4.45% from 4.50% late Monday.
Source: abcNEWS
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