BEIJING (AP) – Asian stock markets were ambiguous on Wednesday after Wall Street rose, and the chairman of the Federal Reserve said it would raise interest rates further if needed to cool inflation.
Shanghai and Hong Kong refused. Tokyo and Seoul have advanced. Oil prices rose and remained above $ 110 a barrel.
On the Wall Street benchmark, the S&P 500 rose to an unusually high daily margin of 2% after positive U.S. retail sales helped offset inflation concerns.
The Fed will “have to consider more aggressive action” if inflation, which is at its four-decade high, fails to ease after previous rate hikes, Chairman Jerome Powell told a Wall Street Journal conference.
Expectations of a rate hike have “increased” because of Powell’s comments, but “markets are shrugging and needing a respite” after the sell-off, IG’s Yeap Jun Rong said in a report.
The Shanghai Composite Index lost 0.5% to 3,077.88, while Hang Seng in Hong Kong fell 0.7% to 20,470.28.
The Nikkei 225 in Tokyo rose 0.7% after the government reported that economic volume fell 0.2% in the first three months of 2022. It was more than expected.
Cospi in Seoul rose 0.2% to 2,626.91, while Sydney’s S&P-ASX 200 rose 1% to 7,183.30.
The markets of New Zealand and Southeast Asia have grown.
On the Wall Street, the S&P 500 rose to 4,088.85. The Dow Jones Industrial Average rose 1.3% to 32,654.59. The Nasdaq rose 2.8% to 11,984.52.
Major technology stocks led the rally. Among the biggest winners were Apple and Microsoft.
Shares of small companies rose more than the rest of the market, a signal that investors are feeling bullish in the economy. Treasury yields have risen.
Investors welcomed a report from the Ministry of Commerce, which shows that retail sales rose 0.9% in April.
Consumers are providing important support to the economy, despite higher costs for gas, food and rent. The economy contracted in the first three months of the year, but consumer and business spending continued to increase at a healthy pace.
The Fed and other central banks are raising interest rates that were close to zero during the coronavirus pandemic, or say they plan to do so to cool inflation.
Problems with supply chains have prompted businesses to raise prices on everything from food to clothing as demand recovers after a pandemic.
Oil and gas prices were fueled by Russia’s war against Ukraine, raising fears that supplies from Russia could be disrupted.
In energy markets, U.S. benchmark oil rose $ 1.13 a barrel to $ 113.52 in electronic trading on the New York Mercantile Exchange. On Tuesday, the contract fell $ 1.80 to $ 112.40. Brent crude oil, which is the basis of prices for international oil trade, added 60 cents in London to $ 112.53 a barrel. In the previous session, he lost $ 2.31 to $ 111.93.
The dollar fell to 129.17 yen from 129.42 yen on Tuesday. The euro fell to $ 1.0531 from $ 1.0543.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or distributed without permission.