Asian indices track gains on Wall St
Seoul, Tokyo and Hong Kong settled with gains, while Shanghai ended lower; European markets were trading in positive territory; US markets ended mostly higher
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Asian shares began June with big gains on Monday after a report showing that inflation in the US is not worsening drove a rally on Wall Street. Hong Kong’s Hang Seng led the region’s gain, jumping 2.7 per cent to 18,560.98 and the Shanghai Composite index rose 0.3 per cent, to 3,095.63. Tokyo’s Nikkei 225 advanced 0.9 per cent to 38,849.65, while the Kospi in Seoul surged 1.9 per cent to 2,687.11. Australia’s S&P/ASX 200 climbed 0.7 per cent to 7,756.80. In Taiwan, the Taiex was up 1.9 per cent.
On Friday, the S&P 500 rose 0.8 per cent to close its sixth winning month in the last seven, ending at 5,277.51. The Dow leaped 1.5 per cent to 38,686.32, and the Nasdaq slipped less than 0.1 per cent to 16,735.02. Gap soared to one of the market’s biggest gains, 28.6 per cent, after delivering stronger profit and revenue for the latest quarter than analysts expected. The retailer also raised its forecasts for sales and profitability this year despite saying the outlook for the economy remains uncertain.
Stocks broadly got a boost from easing Treasury yields in the bond market after the latest reading on inflation came in roughly as expected, at 2.7 per cent last month. That could bolster confidence at the Federal Reserve that inflation is sustainably heading toward its target of 2 per cent, something it says it needs before it will cut its main interest rate. Friday’s report from the US government also showed growth in consumer spending weakened by more than economists expected.
Growth in incomes for Americans also slowed last month. “Finally, the US economic data is starting to show clear signs that consumers are feeling the pinch. With savings running dry, prices skyrocketing, the job market cooling down, disposable incomes taking a hit, and interest rates still high, spending in 2022 is becoming impossible.