Asian shares gain as investors shrug off downbeat data

BANGKOK –

Despite data suggesting slowing economies, shares rose in Asia on Friday. Wall Street gains were the most notable, with the market heading for its first weekly gain in three weeks after suffering from severe losses.

Tokyo’s Nikkei225 index climbed 1.2% to 26,491.97, while the Kospi in Seoul rose 2.4% to 2,369.16. Hong Kong’s Hang Seng grew 2% to 21,707.92 while the Shanghai Composite index increased 1% to 3,354.63.

In Australia, the S&P/ASX 200 gained 0.8% to 6,577.40. In India and Taiwan, shares also rose.

U.S. futures and European futures were also higher.

Market players are looking forward to the U.S. Inflation data due next week. They seemed to ignore preliminary data that showed a slowing in factory activity in many countries, including Japan.

Jun Rong Yeap, IG, stated that the survey of manufacturing managers in “several developed countries” came back lower than expected in both the manufacturing sector and services sector. This points to a broad-based moderation of economic activities. saidIn a commentary

According to a Friday report, Japan’s inflation remained at 2.1% in May. This was due to higher energy costs and a weaker yen. Analysts say that underlying core inflation (which excludes volatile energy costs) remained at 0.8%. The central bank is unlikely not to follow the U.S. Federal Reserve’s lead in raising interest rates. said.

The Bank of Japan is “not convinced” that this will be sustainable, because wage growth is still soft and higher energy costs are weighing down on corporate profits. Marcel Thieliant of Capital Economics saidIn a report

Wall Street trading was slow, as investors waited for Jerome Powell to testify before Congress. He stated to a House committee that the Fed hopes to curb the worst inflation in 40 years without causing a recession but admitted that it has been more difficult.

The S&P 500 ended 1% higher at 3,795.73 after having been down as much as 0.4%. The Dow Jones Industrial Average rose 0.6%, to 30,677.36, and the Nasdaq gained 1.6%, to 11,232.19.

Stocks of smaller companies also gained ground. The Russell 2000 rose 1.3% and reached 1,711.67.

Recent weeks have seen volatility in trading as investors attempt to determine if a recession is imminent. The benchmark S&P 500 is currently in a bear market. This means that the index has fallen more than 20% since January’s high. The index has dropped for 10 of the 11 last weeks.

Powell stated that a recession was not inevitable on Thursday. He has saidIt’s “certainly possible” and the central bank faces a more difficult task due to the war in Ukraine, which has essentially driven oil and other commodity prices higher and made inflation more widespread.

Powell spoke to Congress one week after the Fed raised its benchmark rate by three quarters a percentage point, its largest hike in nearly three decades. Fed policymakers predicted a faster pace for rate hikes this year than they had predicted three month ago. Their key rate is expected to reach 3.8% by the close of 2023. It would be the highest level in 15-years.

Thursday’s Labor Department report showed that less Americans applied for unemployment benefits last week than expected. The solid job market is a positive sign in an otherwise declining economy where consumer sentiment and retail sales are suffering from rising inflation.

Consumers are shifting their spending away from expensive items such as electronics to save money. Record-high gasoline prices are adding to the pressure and show no signs of easing.

Many of the heavy lifting was done in large technology and health-care companies. Microsoft rose 2.3% and Johnson & Johnson rose 2.2%.

Energy stocks fell when the price of U.S. crude dropped 1.8%. Valero fell 7.6%.

U.S. benchmark crude oil traded electronically on the New York Mercantile Exchange Friday morning at $104.63 a barrel. This was an increase of 36 cents. Brent crude oil, which is used for international trading pricing, fell 9 cents to $106.55 a barrel.

Bond yields dropped significantly. The yield on the 10-year Treasury Note, which helps to set mortgage rates, fell to 3.09% late Wednesday from 3.15%.

From 134.94 yen, the U.S. dollar dropped to 134.73 Japanese dollars. The euro rose from $1.0524 to $1.0539.