Shares rose in Asia on Thursday after the mainstream inflation rate in the United States fell below expectations, easing fears that price pressures could push up interest rates further.
Shares rose in Tokyo, Shanghai and Hong Kong, but remained stable in Sydney.
Energy and financial stocks on Wall Street rose, while shares of Big Tech fell. The S&P 500 rose 0.6% and the Dow Jones Industrial Average hit a record high, although technology shares of the Nasdaq fell slightly.
The Department of Labor reported that in February, US consumer prices, the main indicator of inflation at the consumer level, rose 0.4%, the largest gain in six months, which led to a jump in gasoline prices. But mainstream inflation, excluding food and energy, recorded much smaller 0.1% gains, easing fears that inflation could rise as the economy recovers from the epidemic.
“The timing could not have been better,” said Axi ‘s Stephen Innes.
“Like Biden. The House of Representatives has adopted a $ 1.9 trillion fiscal stimulus program. The CPI data, which revealed the main mitigating pressures, welcomed and suppressed the fears of escaped inflation, ”Innes said. “As a result, US inflation data seem to have bought some ‘confidence’ for a long-term, unwavering stimulus.”
Treasury yields fell sharply after Tre Tre, including the 10-year treasury note, which affects mortgage rates and other consumer loan rates. The yield on the 10-year treasury bill was stable at 1.52% on Thursday, after rising to 1.60% at the end of last week.
The yield on the bonds has increased during the last month. The fall in bond prices, which is inversely related to yield, attracted investors who were reluctant to pay high prices for stocks, especially technology stocks, which were the most expensive.
The Tokyo Nikkei 225 Index rose 0.6% to 29211.64 and the Hang Seng Index rose 1.1% to 29230.97 in Hong Kong. South Korea’s Kospi rose 1.9% to 3,019.72%, boosting shares of Samsung Electronics, the largest listed company, by 1%. In Australia, the S & P / ASX 200 was almost unchanged at 6,713.90.
The Shanghai Composite Index jumped 1.8 percent to 3417.38 as Chinese leaders prepared to end their annual, solemn legislative session.
In New York, the S&P 500 rose 23.37 points to 3898.81 points. The Dow gained 1.5% to a record 32,297.02, thanks in part to Boeing’s 6.4% jump. The Dow’s all-time high was about two weeks ago.
The Nasdaq slipped less than 0.1% to 13,068.83, down 7.3% from a record high on February 12.
The traders also offered shares of smaller companies, extending the winning streak of Russell 2000 for the fourth day. The index rose 1.8% to 28 2,285.68.
Investors are also betting that the latest $ 1.9 trillion in government stimulus will help the US economy recover from the coronavirus. The House on Wednesday approved an epidemic aid package for Republican Republicans, sending it to President Biden to be signed into law. The package envisions a $ 1,400 check for most Americans ել directing billions of dollars to schools, state և local governments և businesses.
Banks were big winners. JPMorgan rose 2.2%, Bank of America rose 2.9% and Citigroup rose 3.9%. More than 75% of S&P 500 companies made a profit.
Technology stocks are lagging behind in the wider market. Apple fell 0.9% and Microsoft fell 0.6%
At the New York Mercantile Exchange, US crude oil rose 45 cents to $ 64.89 a barrel on the New York Mercantile Exchange. It rose 43 cents to $ 64.44 a barrel on Wednesday. The international standard for Brent crude oil gained 43 cents per barrel, reaching $ 68.34.
The dollar was at 108.76 Japanese yen and 108.41 yen on Wednesday. The euro fell from $ 1.1928 to $ 1.1925.