Beijing, Oct. 14 (BNA): Asian stock markets rose on Friday after Wall Street rebounded from a slump caused by worse-than-expected inflation numbers, according to the Associated Press.
The Japanese market index jumped 3.5%. Hong Kong shares jumped 3.9% and Shanghai shares are also higher. The price of benchmark US crude oil rose $2 a barrel. US futures also rose sharply.
The benchmark S&P 500 index fell on Wall Street on Thursday after the US consumer price index for September rose 8.2%. But the market index quickly rebounded to end up 2.6% with its biggest daily gain in two and a half years.
The Federal Reserve and central banks in Europe and Asia have raised interest rates by unusually large margins this year to contain inflation that has reached multi-decade highs. Traders are concerned that the global economy could be pushed into recession.
The Nikkei 225 in Tokyo jumped to 27161.46 and the Hang Seng in Hong Kong climbed to 117,020.15.
The Shanghai Composite added 2.2% to 3,083.76 and the Kospi in Seoul rose 2.3% to 2,212.78.
Sydney’s S&P-ASX 200 rose 1.8% to 6758.80, and India’s Sensex opened 1.7% higher at 5,8234.62. New Zealand and Southeast Asia markets also rose.
On Wall Street, the S&P 500 rose to 3669.91 on Thursday after swinging five percentage points from its lowest point of the day.
The Dow Jones Industrial Average rose 2.8% to 30,038.72. The Nasdaq Composite Index rose 2.2% to 10,649.15.
Also on Friday, China announced that consumer price inflation rose to a 29-month high of 2.8% in September from 2.5% the previous month. That was below the official ceiling of 3%, leaving Beijing room to stimulate weak economic growth.
Thursday’s US government data showed that inflation is spreading more broadly across the economy. One component that policymakers and investors follow closely is an acceleration to a 40-year high.
The CPI declined from an 8.3% increase in August but not as much as expected. Core inflation, which strips out volatile food and energy costs to show the long-term trend, accelerated to 6.6% from 6.3% in August. Prices in September rose 0.6% from the previous month.
The yield on the 10-year Treasury, which helps determine the rates for mortgages and many other loans, rose to 3.96% from 3.90% late Wednesday. Earlier today, it exceeded 4%.
The two-year yield, which moves more based on the Fed’s job outlook, rose to 4.48% from 4.29%. It exceeded 4.50% earlier in the morning.
In energy markets, the price of US crude rose $2.11 to $89.38 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price global oils, rose 22 cents to $94.79 a barrel in London.
The dollar rose to 147.46 yen from 147.17 yen on Thursday. It is trading at a 32-year high. The euro fell to 97.77 cents from 97.85 cents.
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