Beijing, Jul 8 (BNA): Asian stock markets followed Wall Street higher on Friday after two Federal Reserve officials said the US economy may avoid a recession and a news report said China may boost construction spending to stimulate its faltering economy.
Tokyo’s main stock market index gave up some of its gains after the shooting of former Japanese Prime Minister, Shinzo Abe, but remained in positive territory for the day.
Shanghai, Hong Kong and Sydney also advanced. Oil prices fell but remained above $100 a barrel, according to the Associated Press.
Wall Street’s benchmark S&P 500 index rose 1.5% Thursday after Fed rate-setter James Bullard said a “soft landing” of the economy was the most likely scenario. Another member of the committee, Christopher Waller, said “fears of a recession are exaggerated.”
Tokyo’s Nikkei 225 rose 0.6% to 26,654.15 noon after a gunman shot Abe during an election event in the western Japanese city of Nara. The index rose 1.4 percent before the attack.
Abe, who has overseen an economic stimulus effort dubbed Abenomics, will step down as prime minister in 2020.
The Shanghai Composite Index advanced 0.2% to 3370.28 after Bloomberg News reported that China may add 1.5 trillion yuan ($220 billion) to spending on construction of public works this year to spur economic growth. Hong Kong’s Hang Seng rose 0.2% to 21,694.17.
Investors are uneasy that sharp increases in US and European interest rates to cool four-decade-high inflation could derail global economic growth.
The US government is due to release employment data for June. Official data showed Thursday that the number of Americans filing for unemployment benefits exceeded 230,000 for the fifth consecutive week. It was the highest level in nearly six months.
European markets rose on Thursday after British Prime Minister Boris Johnson announced his resignation after a series of Conservative Party exits from his government.
In energy markets, benchmark US crude rose 29 cents to $103.02 a barrel in electronic trading on the New York Mercantile Exchange.
The contract jumped $4.20 to $102.73 on Thursday. Brent crude, the price basis for international trading, rose 78 cents to $105.43 a barrel in London. It advanced $3.96 in the previous session to $104.65.
The dollar fell to 135.55 yen from 136.11 yen on Thursday. The euro fell to $1.0150 from $1.0156.
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