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Asian stocks follow Wall Street climb / Photo: STR - AFP
NYSE - LSE
| RBGPF | 1.33% | 61 | $ | |
| RELX | 0.51% | 46.81 | $ | |
| GSK | -0.38% | 34.02 | $ | |
| SCS | -1.33% | 13.54 | $ | |
| RIO | -1.53% | 62.03 | $ | |
| RYCEF | 0.44% | 6.8 | $ | |
| NGG | -0.68% | 62.83 | $ | |
| AZN | -0.06% | 66.36 | $ | |
| CMSC | -0.65% | 24.57 | $ | |
| BTI | 1.01% | 37.71 | $ | |
| BCC | -2.76% | 148.41 | $ | |
| CMSD | -0.61% | 24.43 | $ | |
| BP | -1.24% | 28.96 | $ | |
| BCE | -1.46% | 26.63 | $ | |
| VOD | -0.56% | 8.86 | $ | |
| JRI | -0.98% | 13.24 | $ |
Asian stocks follow Wall Street climb
Asian markets mostly mirrored positive strides on Wall Street in early trade Thursday, as easing US consumer inflation buoyed hopes that a big interest rate cut was around the corner and economic growth in Japan outpaced expectations.
The eagerly awaited US consumer price index (CPI) data showed a 2.9 percent rise last month from a year ago -- its smallest 12-month increase since March 2021 -- setting the stage for the Federal Reserve to start cutting interest rates.
Traders were optimistic that a cut at the September meeting could exceed the anticipated 25 basis points, with some observers eyeing as much as 50.
"The current buzz isn't about whether the Fed will trim rates at its spotlight-stealing September 17-18 gathering but how deep they'll dig into the cuts," Stephen Innes from SPI Asset Management said in a note.
Positive growth figures from Japan meant the Nikkei 225 led the Asian surge, as the world's fourth-largest economy reported a better-than-expected GDP rise of 0.8 percent for the second quarter.
The news came a day after Prime Minister Fumio Kishida said he would step down next month, with his poll ratings tumbling ahead of next year's elections due to price rises that have eaten into Japanese incomes and a slew of scandals.
"Consumer sentiment should have improved because real wages have turned positive as promised wage increases start to get paid to workers," Hiroyuki Ueno, chief strategist at SuMi Trust, said before the data's release.
"In addition, the recovery in shipments by some automakers, some of which were suspended temporarily in May, will also have been a positive boost for consumer spending."
But news from China was not as bullish.
Industrial production slowed and consumer spending ticked up -- marginally beating analyst expectations -- while unemployment rose in July.
The uninspiring data dampened slim hopes of the start of an economic revival in Asia's biggest market.
"This snapshot of a once thriving economy underscores a persistent drag on domestic demand, not significantly alleviated by governmental initiatives aimed at boosting consumption and addressing imbalances in the recovery process," Innes said.
"No amount of rate cutting seems to entice consumer spending if confidence in the economy or personal financial security is lacking."
Despite the underwhelming news, Shanghai move higher in early trade, and Hong Kong also edged up after a slow start.
Seoul, Sydney and Singapore were also up, while Taipei and Jakarta ticked down.
- Key figures around 0310 GMT -
Tokyo - Nikkei 225: UP 1.0 percent at 36,808.75 (BREAK)
Hong Kong - Hang Seng Index: UP 1.0 percent at 17,281.35
Shanghai - Composite: UP 1.2 percent at 2,884.92
Euro/dollar: DOWN at 1.1008 from $1.1012 on Tuesday
Pound/dollar: UP at $1.2830 from $1.2829
Dollar/yen: UP at 147.46 yen from 147.43 yen
Euro/pound: DOWN at 85.80 pence from 85.83 pence
West Texas Intermediate: UP .39 percent at $77.28 per barrel
Brent North Sea Crude: UP .36 percent at $80.01 per barrel
New York - Dow: UP 0.6 percent at 40,008.39 points (close)
London - FTSE 100: UP 0.6 percent at 8,281.05 (close)
(W.Walker--TAG)
