BEIJING (AP) – Asian stock markets followed Wall Street higher on Wednesday after Federal Reserve Chairman Jerome Powell said monetary policy would return to normal and interest rates could be raised more sooner than expected.
Shanghai, Tokyo, Hong Kong and Sydney advanced. Oil prices have increased slightly.
Wall Street’s benchmark S&P 500 rose 0.9% after Powell said politics “in all likelihood” would return to normal as bond purchases and other economic stimulus continued. slow down. Speaking to the Senate Banking Committee, he said ultra-low rates could be raised earlier than expected if necessary to slow inflation which is at its highest level in four decades.
“Wall Street now has a better understanding of how the Fed is going to normalize its policy,” Oanda’s Edward Moya said in a report. “After Powell’s testimony some investors believe they have received the clear signal to buy the downside.”
The Shanghai Composite Index gained 0.2% to 3,574.61 and the Nikkei 225 in Tokyo rose 1.9% to 28,748.21. Hong Kong’s Hang Seng gained 1.9% to 24,193.22.
The Kospi in Seoul rose 1.4% to 2,969.16 and the S & P-ASX 200 in Sydney rose 0.6% to 7,438.20. New Zealand declined while Southeast Asian markets advanced.
Investors were shaken in mid-December when Fed officials announced they would speed up plans to remove stimulus measures that are pushing stock prices up. They tried to figure out how the world’s largest economy and financial markets would react.
On Tuesday, the S&P 500 broke a series of five-day declines and hit 4,713.07. The Dow Jones Industrial Average gained 0.5% to 36,252.02. The Nasdaq composite rose 1.4% to 15,153.45.
Apple rose 1.7% and chipmaker Nvidia rose 1.5%. Communications actions and a mix of retailers and other businesses that rely on direct consumer spending have increased. Facebook’s parent company, Meta Platforms, gained 1.9% and Gap rose 3%.
The World Bank cut its forecast for global economic growth this year to 4.1% from 4.3% in part due to supply chain disruptions that fueled inflation. The agency estimates that the global economy grew 5.5% in 2021.
On Wednesday, the US government is due to report consumer inflation. This is followed Thursday by a wholesale price index.
In energy markets, benchmark US crude rose 29 cents to $ 81.51 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose from $ 2.99 on Tuesday to $ 81.22. Brent crude, used as the price base for international oils, was 19 cents higher at $ 83.91 a barrel in London. He earned $ 2.85 the previous session to $ 83.72.
The dollar edged down to 115.33 yen from 115.37 yen on Tuesday. The euro fell from $ 1.1366 to $ 1.1375.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.