Global stocks rise after US inflation cools

Beijing: Global stock markets rose on Friday after US inflation eased in March and China reported unexpectedly strong exports. London and Frankfurt opened higher. Shanghai, Tokyo and Hong Kong advanced. Oil prices rose. Wall Street futures were lower, giving up part of Thursday's gains after US inflation at the wholesale level slowed more than expected. Asian markets were “taking cues from a solid rally on Wall Street,” said Anderson Alves of ActivTrades in a report.

In early trading, the FTSE 100 in London gained 0.2 per cent to 7,862.09. The DAX in Frankfurt advanced 0.2 per cent to 7,843.38 and the CAC 40 in Paris was 0.2 per cent higher at 7,497.61. On Wall Street, the future for the benchmark S and P 500 index was off 0.2 per cent. That for the Dow Jones Industrial Average was down 0.3 per cent. On Thursday, the S and P 500 rose 1.3 per cent after government data showed prices paid to US producers in March rose at their slowest rate in more than two years. The Dow advance 1.1 per cent. The Nasdaq jumped 2 per cent to 12,166.27.

In Asia, the Shanghai Composite Index closed up 0.6 per cent at 3,338.15 after China's March exports rose 14.8 per cent over a year earlier, rebounding from a decline in January and February. The Nikkei 225 in Tokyo jumped 1.2 per cent to 28,493.47. The Hang Seng in Hong Kong added 0.5 per cent to 20,438.81. The Kospi in Seoul advanced 0.4 per cent to 2,571.49. Sydney's S and P-ASX 200 was 0.5 per cent higher at 7,361.60. New Zealand declined while Singapore and Jakarta gained. Indian markets were closed for a holiday.

Traders hope signs that stubbornly high inflation is weakening might prompt the Federal Reserve and other central banks to postpone or scale back plans for interest rate hikes to cool business and consumer activity. Government data on Thursday showed prices paid to US producers rose 2.7 per cent over a year earlier, the smallest gain in more than two years.

In energy markets, benchmark US crude edged up 3 cents to $82.19 per barrel in electronic trading on the New York Mercantile Exchange.