Global stocks are a rebound in inflation concerns
Asia-Pacific stocks merged as global markets recovered from the volatility surge caused by inflation fears.
Japan’s Topix rose 1.8 percent on Friday, and Hong Kong’s Hang Seng rose 1 percent. China’s CSI 300 index listed in Shanghai and Shenzhen was 1.7 percent higher and Australia’s S & P / ASX 200 fell 1 percent.
Earnings reversed weakness in Asian markets on Thursday, behind US inflation data this week consumer prices in April they climbed at the fastest pace in 13 years.
That reading, which exceeded economists ’expectations, pushed Wall Street shares toward him the worst day months on Wednesdays. US stock reference, S&P 500, he bounced to close 1.2 percent higher the next day.
The U.S. 10-year Treasury yield changed little by 1.654 percent during Friday’s trade in Asia, after falling 0.04 percentage points overnight.
The futures of the S&P 500 rose 0.5% and those of the London FTSE 100 rose 0.7%.
Global markets have been under strain as investors and policymakers look signs of higher inflation behind the global economic recovery from the coronavirus pandemic.
This has raised fears among investors that the U.S. economy could warm up after fiscal support and that the Federal Reserve may be forced to tighten monetary policy.
“While interest rates will remain appropriate in the short term, inflationary pressures will continue to warm as the U.S. economy continues to recover to normalized levels,” said David Chao, global market strategist for asset manager Invesco. “The Fed may force it to react before it’s too late.”
Raw materials it gathered significantly in recent weeks, it weakened on Friday. Brent oil, an international oil benchmark, fell 0.5 percent to $ 66.70 a barrel. The U.S. West Texas Intermediate fell 0.5 percent to $ 63.50 a barrel.
Colonial pipeline, critical fuel artery in the US, operations resumed after being shut down by a cyberattack late last Wednesday.
Gold, which some investors see as hedging against inflation, lost 0.3 percent to trade at $ 1,821.8 an ounce.
Additional report by Daniel Shane in Hong Kong