Asian Shares Gain, Buoyed By Lower U.S. Inflation Rate

Stocks were mostly higher Wednesday in Asia after a rally on Wall Street spurred by news that inflation in the US cooled more than expected last month, Elaine Kurtenbach reported for the Associated Press (AP).

Photo Insert: The Fed is widely expected to raise its benchmark rate a half-point Wednesday, smaller than the past four hikes of three-quarters of a point.

The 7.1% consumer price index reading for November raised hopes Tuesday for easing pressure on the economy ahead of an interest rate policy update from the US Federal Reserve.

The Fed is widely expected to raise its benchmark rate a half-point Wednesday, smaller than the past four hikes of three-quarters of a point.

Also Wednesday, the Bank of Japan’s quarterly “tankan” survey showed a deterioration in business conditions for major Japanese manufacturers, reflecting higher costs for industrial inputs and energy and weaker demand as the Fed and other central banks raise interest rates to tame inflation.

Tokyo’s Nikkei 225 advanced 0.7% to 28,156.21 and the Hang Seng in Hong Kong added 0.6% to 19,722.16. South Korea’s Kospi was up 1.1% to 2,399.25. The Shanghai Composite index edged 0.1% lower to 3,172.33.

In Australia, the S&P/ASX 200 gained 0.7% to 7,251.30. India’s Sensex gained 0.7% while the SET in Bangkok added 0.6%.

On Tuesday, the S&P 500 rose 0.7% to 4,019.65 and the Nasdaq composite gained 1% to 11,256.81. The Dow Jones Industrial Average picked up 0.3% to 34,108.64. Small company stocks also gained ground. The Russell 2000 index rose 0.8% to 1,832.36.

The yield on the 10-year Treasury, which helps set rates for mortgages and other important loans, fell to 3.48% from 3.62% late Monday. The two-year yield, which more closely tracks expectations for the Fed, dropped to 4.22% from 4.39%.

In other trading, U.S. benchmark crude lost 30 cents to $75.09 per barrel in electronic trading on the New York Mercantile Exchange. It jumped $2.22 on Tuesday to $75.39 per barrel. Brent crude, the pricing basis for international trading, shed 34 cents to $80.34 per barrel.

The dollar slipped to 135.43 Japanese yen from 135.59 yen. The euro rose to $1.0638 from $1.0633.

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