Asian stocks upbeat as Wall St at 20-mth high
Hang Seng fell, while Shanghai Composite and Nikkei 225 index gained; In Europe, Germany’s DAX was unchanged, and the CAC 40 in Paris gained, FTSE-100 was down
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Asian shares mostly gained on Monday after Wall Street reached a 20-month high ahead of a week that includes essential US inflation data and the Federal Reserve’s final rate decision of the year. US futures were higher and oil prices rose to recover some of their sharp losses in recent weeks. Hong Kong’s Hang Seng sank 0.8 per cent to 16,208.21 and the Shanghai Composite added 0.7 per cent to 2,990.35. In China, leaders agreed at an annual planning meeting last week to boost spending to accelerate the world’s second-largest economy, though details of policy changes were not provided.
Despite the Chinese economy expanding by around 5 per cent this year, in line with government targets, the recovery following the lifting of strict COVID-19 restrictions was short-lived, and a slowdown is expected next year. Data released on Saturday showed China’s consumer prices in November experienced their steepest fall in three years, in another sigh of weakness. Tokyo’s Nikkei 225 index gained 1.5 per cent to 32,791.80 and the Kospi in Seoul was 0.3 per cent higher, to 2,525.01. Australia’s S and P/ASX 200 was virtually unchanged. India’s Sensex was 0.1 per cent higher and Bangkok’s SET added 0.2 per cent.
On Friday, the S and P 500 climbed to its best level in 20 months following a stronger-than-expected report on the US job market. It rose 0.4 per cent to 4,604.37, enough to clinch a sixth straight winning week for the index. That’s its longest such streak in four years. Wall Street’s main measure of health is now just 4 per cent below its record set at the start of last year. The Dow Jones Industrial Average rose 0.4 per cent to 36,247.87, and the Nasdaq composite gained 0.4 per cent to 14,403.97. Yields rose more sharply in the bond market following the report, which said US employers added more jobs last month than economists expected. Workers’ wages also rose more than expected, and the unemployment rate unexpectedly improved. The strong data have kept at bay worries about a possible recession, at least for a while longer, and stocks of some companies whose profits are closely tied to the strength of the economy rallied.
