Stock markets in Asia rose sharply after US inflation cooled sharply

Stock markets in Asia rose sharply after US inflation cooled sharply

Photo: ANP

Asian stocks posted solid gains on Thursday. A stronger-than-expected cooling in U.S. inflation fueled hopes that the U.S. central bank will soon stop raising interest rates. Inflation in the world’s largest economy eased to 3 percent in June. This is the lowest level in more than two years. Technology companies, particularly sensitive to higher interest rates, made significant gains.

Investors processed disappointing trade data from China, providing fresh evidence of a faltering recovery in the world’s second-largest economy. For example, exports fell more than 12 percent in June, when economists had expected a 10 percent drop. Demand for Chinese goods is under pressure as consumers around the world become more cautious about their spending due to high inflation and rising interest rates. The 6.8 percent drop in imports was more than expected. The weak data fueled hopes of more support measures from Beijing to pull the economy out of recession.

Hong Kong’s Hong Kong index posted a 2.5 percent interim gain, the biggest gainer in the region. This was mainly due to strong price increases by major Chinese technology companies such as Alibaba, Prakwan and Tencent, which managed to gain more than 5 percent. The Shanghai Stock Exchange rose 0.9 percent.

In Tokyo, the Nikkei gained 1.4 percent. Japanese technology investor SoftBank was one of the strongest risers with a gain of more than 2 percent. Investors welcomed news that SoftBank plans to list payments company PayPay on the New York Stock Exchange. Electronics conglomerate Sony was also in the lead with 4.7 percent. Chip tester Advantest also traded well, advancing 3.6 percent. Chip equipment maker Tokyo Electron gained more than 2 percent.

See also  The US has imposed a ban on aluminum imports from Russia

The Kospi in Seoul rose 0.9 percent. Investors reacted to South Korea’s central bank’s decision to keep interest rates unchanged at 3.5 percent for the fourth straight time. The inflation rate was 2.7 percent in June. This is the lowest level since September 2021. All Ordinaries in Sydney rose 1.6 per cent.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top