Singapore, Jan. 25 (BNA): Asian stocks extended their winning streak to a seven-month high on Wednesday, with South Korean stocks advancing, and the Australian dollar hitting multi-month highs as rising inflation sent interest rates soaring. more likeable.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.4% to a seven-month high, with South Korean shares rising 1.3% as trading resumed after the Lunar New Year holidays, Reuters reports.
The MSCI index is up 9% so far this year after falling nearly 20% in 2022. Volume fell as Chinese and Taiwanese markets were closed for holidays.
The Nikkei rose 0.1% and Singapore jumped 1.7%.
Globally, stocks posted solid gains this year after a rough 2022, on expectations that inflation is nearing a peak and that US interest rate hikes will wane. China’s dismantling of COVID controls and reopening of its borders has boosted investor sentiment.
“Markets appear to be increasingly tempted by ‘Goldilocks’ results to tighten risks that simultaneously mitigated recession risks,” Mizuho analysts said in a note.
US stock indices closed mixed on Tuesday after companies warned of a difficult year ahead along with some earnings gains, while data showed US business activity contracted for a worrying seventh consecutive month in January.
Microsoft Corp rose in after-hours trading as its better-than-expected results showed some strength in the face of the weak economy.
The MSCI World All Countries Index hit a new closing high in five months on Tuesday.
Stronger-than-expected economic data in Europe eased market fears of a severe recession in the eurozone as energy prices fell, although interest rates continued to rise.
The euro held near its highest level in nine months against the dollar, as trading was encouraged by a more rosy growth outlook for the eurozone against looming signs of recession in the United States.
Australian share markets fell 0.2% on Wednesday after a surprise spike in inflation to a 33-year high in the latest quarter fueled the case for the Reserve Bank of Australia to continue raising interest rates.
Investors have narrowed the odds of the Reserve Bank of Australia (RBA) raising interest rates by a quarter point to 3.35% when it meets on February 7. Analysts thought there was some possibility that the RBA would pause its tightening campaign, but push the pace of inflation for that.
However, the New Zealand dollar fell about 0.4% to $0.648 after New Zealand’s annual inflation of 7.2% in the fourth quarter came in below the central bank’s forecast of 7.5%.
US Crude Oil prices settled at $80 a barrel after falling in the previous session as preliminary data indicated a larger-than-expected build in US oil inventories.
Gold prices settled at $1,938 an ounce, hovering near the nine-month high touched in the previous session.