sunny.png
Wednesday May 18th, 2022 1:21PM

Asian stocks follow Wall St up as Powell says rates to rise

By The Associated Press
Related Articles
  Contact Editor

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 might be raised earlier than planned.

Shanghai, Tokyo, Hong Kong and Sydney advanced.

Wall Street's benchmark S&P 500 index rose 0.9% after Powell said policy “in all likelihood” will return to normal as bond purchases and other economic stimulus winds down. Speaking before the Senate Banking Committee, he said ultra-low rates might be raised earlier than planned if necessary to cool inflation that is at a four-decade high.

“Wall Street now has a better understanding on how the Fed will normalize policy,” Edward Moya of Oanda said in a report. “After Powell’s testimony, some investors feel they got the all-clear signal to buy the dip.”

The Shanghai Composite Index gained 0.3% to 3,579.74 and the Nikkei 225 in Tokyo rose 1.8% to 28,720.22. The Hang Seng in Hong Kong gained 2.2% to 24,256.72.

The Kospi in Seoul added 1.4% to 2,967.98 and Sydney's S&P-ASX 200 was 0.6% higher at 7,437.10.

India's Sensex opened up 0.8% at 61,084.46. New Zealand retreated while Southeast Asian markets gained.

Investors were rattled in mid-December when Fed officials said they would accelerate plans to wind down stimulus that is boosting stock prices. They have been trying to figure out how the world's biggest economy and financial markets will react.

On Tuesday, the S&P 500 broke a five-day series of declines and rose to 4,713.07. The Dow Jones Industrial Average gained 0.5% to 36,252.02. The Nasdaq composite advanced 1.4% to 15,153.45.

Apple rose 1.7% and chipmaker Nvidia rose 1.5%. Communication stocks and a mix of retailers and other companies that rely on direct consumer spending rose. Facebook parent 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% due in part to supply chain disruptions that fueled inflation. The agency estimates the world economy grew by 5.5% in 2021.

On Wednesday, the U.S. government is due to report consumer inflation. That is followed Thursday by an index of wholesale prices.

In energy markets, benchmark U.S. crude rose 7 cents to $81.29 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.99 on Tuesday to $81.22. Brent crude, used as the price basis for international oils, lost 6 cents to $83.66 per barrel in London. It gained $2.85 the previous session to $83.72.

The dollar edged down to 115.34 yen from Tuesday's 115.37 yen. The euro rose to $1.1378 from $1.1366.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Utilities
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Asian stocks follow Wall St up as Powell says rates to rise
Asian stock markets have followed Wall Street higher after Federal Reserve chairman Jerome Powell said U.S. interest rates might be raised earlier than planned
10:59PM ( 5 minutes ago )
Djokovic clarifies movements, Australian visa saga continues
Novak Djokovic has moved to clarify how mistakes were made on the immigration document he submitted on his arrival in Melbourne as a COVID-19 vaccination saga continues to overshadow the days leading up to the Australian Open
10:30PM ( 33 minutes ago )
Biden challenges Senate on voting: 'Tired of being quiet!'
President Joe Biden is challenging senators to “stand against voter suppression,” urging them to change Senate rules in order to pass voting rights legislation that Republicans are blocking from debate and votes
10:22PM ( 41 minutes ago )
Associated Press (AP)
Giants fire Joe Judge as coach after 10-23 record in 2 years
The New York Giants have cleaned house, firing coach Joe Judge a day after general manager Dave Gettleman retired
7:25PM ( 3 hours ago )
Bank of America slashes fees for account overdrafts
Bank of America is slashing the amount it charges customers when they spend more than they have in their accounts and plans to eliminate entirely its fees for bounced checks
6:52PM ( 4 hours ago )
US shoppers find some groceries scarce due to virus, weather
Shortages at U.S. grocery stores have grown more acute in recent weeks
6:10PM ( 4 hours ago )
AP Business
US stocks shed early loss, rise as tech stocks gain ground
Stocks shed an early loss and rose in afternoon trading on Wall Street Tuesday as technology stocks reversed course and turned higher
3:22PM ( 7 hours ago )
Fed's Powell: High inflation poses a threat to job market
Federal Reserve Chair Jerome Powell said Tuesday that high inflation is a serious threat to the Fed’s goal of helping put more Americans back to work, and said the Fed will raise rates more than it now plans if needed to stem surging prices
2:31PM ( 8 hours ago )
Fed's Powell: Inflation poses a major threat to job market
Chair Jerome Powell acknowledged that high inflation has emerged as a serious threat to the Federal Reserve’s goal of helping put more Americans back to work and that the Fed will raise rates more than it now plans if needed to stem surging prices
11:30AM ( 11 hours ago )
AP Business - Economy
European shares rise, Asia declines, eyeing Fed, omicron
European benchmarks have risen after Asian shares mostly declined following a retreat on Wall Street
4:40AM ( 18 hours ago )
Asian stocks mostly lower, eyeing Fed, China omicron cases
Asian shares have mostly declined in cautious trading following a retreat on Wall Street
2:03AM ( 21 hours ago )
Asian stocks fall as markets eye Fed, China omicron cases
Asian shares are sinking in cautious trading following a decline on Wall Street amid continuing worries about the omicron coronavirus variant, especially rising cases in China
9:20PM ( 1 day ago )
AP Business - Financial Markets
California lawmakers debate universal health care proposal
California lawmakers are set to debate whether to create the nation's first universal health care system
4:32PM ( 6 hours ago )
California lawmakers to debate universal healthcare proposal
California lawmakers are set to debate whether to create the nation's first universal health care system
12:17PM ( 10 hours ago )
Home COVID tests to be covered by insurers starting Saturday
Starting Saturday, private health insurers will be required to cover up to eight home COVID-19 tests per month for those on their plans
9:46PM ( 1 day ago )
AP Business - Industries
Stocks wobble following mixed jobs data as tech sinks again
Stocks turned mixed Friday as Treasury yields rise, with much of Wall Street seeing the Federal Reserve on course to raise interest rates as soon as March despite a mixed report on the U.S. jobs market
2:05PM ( 4 days ago )
Stocks slip following mixed jobs data as tech sinks again
Stocks are slipping Friday as Treasury yields rise, with much of Wall Street seeing the Federal Reserve on course to raise interest rates as soon as March despite a mixed report on the U.S. jobs market
11:20AM ( 4 days ago )
EXPLAINER: What does record inflation mean for the eurozone?
Inflation in the 19 countries that use the euro currency hit its highest level on record, led by surging food and energy costs
10:43AM ( 4 days ago )
AP Business - Financial Services
As spending bill stalls, Biden climate goals remain elusive
President Joe Biden faces a steep path to achieve his ambitious goal of slashing planet-warming greenhouse gas emissions in half by 2030
1:15PM ( 3 days ago )
Former anti-terror chief arrested over Kazakhstan protests
The former head of Kazakhstan's counterintelligence and anti-terror agency has been arrested on charges of attempting to overthrow the government
12:17PM ( 3 days ago )
Dozens of protesters, 12 police dead in Kazakhstan protests
Authorities say security forces have killed dozens of protesters and 12 police have died during extraordinarily violent demonstrations in Kazakhstan
3:39PM ( 5 days ago )
AP Business - Utilities
Djokovic clarifies movements, Australian visa saga continues
Novak Djokovic has moved to clarify how mistakes were made on the immigration document he submitted on his arrival in Melbourne as a COVID-19 vaccination saga continues to overshadow the days leading up to the Australian Open
10:30PM ( 33 minutes ago )
Biden challenges Senate on voting: 'Tired of being quiet!'
President Joe Biden is challenging senators to “stand against voter suppression,” urging them to change Senate rules in order to pass voting rights legislation that Republicans are blocking from debate and votes
10:22PM ( 41 minutes ago )
Booker scores 16 as Suns cool off streaking Raptors, 99-95
Devin Booker scored 16 points, including the go-ahead basket with 1:02 remaining, and Chris Paul had 15 points and 12 assists as the Phoenix Suns beat Toronto 99-95 to snap the Raptors' longest winning streak of the season at six games
10:21PM ( 42 minutes ago )
No. 19 Texas Tech ends No. 1 Baylor's 21-game streak, 65-62
The nation's longest winning streak is over after No. 19 Texas Tech won 65-62 at top-ranked Baylor
9:58PM ( 1 hour ago )
Democrat Cherfilus-McCormick to fill Florida US House seat
Democrat Sheila Cherfilus-McCormick will fill Florida’s vacant U.S. House seat
9:56PM ( 1 hour ago )