New York, Dec. 9 (BNA): Stocks rose in Asia on Friday after a rally on Wall Street led by the latest rally in tech companies, the Associated Press reports.
Chinese benchmarks rose on reports that the government is planning new measures to support the ailing real estate sector, which has stunted growth over the past several years.
The relaxation of some “no coronavirus” rules in the country also boosts hopes that the economy will gain momentum.
Hong Kong’s Hang Seng Index rose 1.5% to 19,726.07. The Shanghai Composite Index rose 0.2%, to 3,203.57.
The Nikkei 225 in Tokyo rose 1.3% to 27924.81 and the Kospi in Seoul rose 0.4% to 2380.87. Australia’s S&P/ASX 200 rose 0.5% to 7,211.60.
On Thursday, the S&P 500 rose 0.8% to 3963.51, while the heavy Nasdaq Composite closed 1.1% higher at 11082. The Dow Jones Industrial Average added 0.5% to 33781.48.
Small-cap stocks rose. The Russell 2000 Index increased by 0.6%, to 1,818.29.
Tech stocks led most of the rally, along with healthcare companies and retailers. Chipmaker Nvidia rose 6.5%, Pfizer rose 3.1% and Nike rose 2.8%.
Bond yields have mostly gone up. The yield on 10-year Treasury notes, which help set mortgage rates, rose to 3.49% from 3.42% late Wednesday.
The major indices are all in the red for this week and have oscillated between large monthly gains and losses throughout the year. Investor concerns about inflation, rising interest rates and recessionary risks made the market volatile.
This has also left Wall Street focused on data points around the economy, especially those related to inflation.
A lower unemployment rate is good for the broader economy but makes it more difficult for the Federal Reserve to tame inflation.
The central bank has been raising interest rates to curb borrowing and spending in order to cool hyperinflation. Its benchmark interest rate ranges from 3.75% to 4%, the highest rate in 15 years.
The Federal Reserve meets next week and is expected to raise the benchmark interest rate by half a percentage point.
Analysts say flexible consumer spending, linked in part to strong employment, has made fighting inflation more difficult, but is keeping the economy strong enough to avoid a recession.
It also increases the odds that the Federal Reserve will go too far in raising interest rates.
Wall Street will get more information on how consumers feel about inflation and the economy on Friday when the University of Michigan releases its December Consumer Survey.
Investors will also get an update on how inflation is affecting business when the government releases its latest monthly report on wholesale prices on Friday.
In other trading, the price of US crude oil rose 51 cents to 71.97 dollars a barrel in electronic trading on the New York Mercantile Exchange. It settled down 0.8%, at $71.46 a barrel.
Brent crude rose 57 cents to $76.72 a barrel. The US dollar fell to 135.99 yen from 136.69 yen. The euro rose to $1.0581 from $1.0556.
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