Asian stocks extend global gains ahead of U.S. inflation test

Hong Kong, Nov. 9 (BNA): Asian stocks followed Wall Street higher in early trading on Tuesday as the passage of the US Infrastructure Act boosted sentiment while oil prices rose on the outlook for energy demand in an expansionary global economy.

Congress’ passage of a long-delayed $1 trillion infrastructure bill over the weekend cheered investors, who face another test later in the week from a reading on inflation in the US that could affect plans to tighten monetary policy.

Early in the Asian trading day, the broadest MSCI index of Asia Pacific shares outside Japan was up 0.3%.

Japan’s Nikkei rose 0.06% while Australian shares fell 0.12%.

China’s benchmark CSI300 index is up 0.33% in early trade. Hong Kong’s Hang Seng Index opened 0.65% higher.

On Monday, the benchmark S&P 500 on Wall Street and the Nasdaq extended their run from all-time highs to eight consecutive sessions, while the benchmark Dow Jones index hit its record closing highs in a row.

However, a 4.9 percent drop in Tesla shares weighed on the S&P 500. Tesla fell after CEO Elon Musk’s Twitter poll on whether he should sell about 10 percent of his shares in the electric car maker . The poll received more than 3.5 million votes, compared to 57.9% who voted “yes”.

Global stocks also rose on Monday after hitting a record high last week as relatively dovish central bank messages and strong US employment data on Friday added to optimism from a healthy earnings season on both sides of the Atlantic.

But a tight US labor market and turmoil in global supply chains could lead to a higher consumer price reading on Wednesday. Strong inflation is likely to revive talk of the Federal Reserve raising interest rates earlier than expected.

READ MORE  Asian stocks fall to near 1-year low as oil prices stoke inflation worries

“Although Chairman Powell maintains that the Fed can be patient with its rate hike, while ramping up and broadening its core inflation and wage metrics, the clock is ticking on how long it can maintain this,” ANZ analysts said in a note to Reuters. Line.” mentioned.

Traders also sent most US Treasury yields higher on Monday after Congress passed an infrastructure bill on Saturday.

The benchmark 10-year Treasury yield touched 1.4862% compared to its US close of 1.497% on Monday.

The dollar index, which measures the greenback against a basket of six currencies, rose to 94.075.

Oil prices strengthened as the passage of the US infrastructure bill and Chinese export growth boosted the energy demand outlook. The state-owned producer, Saudi Aramco, also raised the official selling price for its crude.

US crude rose 0.15% to $82.05 a barrel. Brent crude rose to $83.59 a barrel.

Spot gold is down slightly, trading at $1,823.3 an ounce.

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