Asian shares advance, Hong Kong up 2.8%, after Wall St rally

Dec 20, 2022, 8:53 AM | Updated: Dec 22, 2022, 2:25 am
A currency trader talks on the phone near a screen showing the foreign exchange rate between U.S. d...

A currency trader talks on the phone near a screen showing the foreign exchange rate between U.S. dollar and South Korean won, center, at a foreign exchange dealing room in Seoul, South Korea, Thursday, Dec. 22, 2022. Shares advanced in Asia on Thursday after a rally on Wall Street as investors welcomed a report showing U.S. consumer confidence is holding up despite the Federal Reserve’s campaign to fight inflation by raising interest rates. (Choi Jin-suk/Newsis via AP)

(Choi Jin-suk/Newsis via AP)

BANGKOK (AP) — Shares advanced in Asia on Thursday after a rally on Wall Street as investors welcomed a report showing U.S. consumer confidence is holding up despite the Federal Reserve’s campaign to fight inflation by raising interest rates.

Hong Kong’s Hang Seng jumped 2.8% and benchmarks also rose in Tokyo, Sydney and Seoul. Mumbai declined. U.S. futures and oil prices were modestly higher.

Markets got a boost from a report showing U.S. consumer confidence is surprisingly strong, despite inflation squeezing wallets. The Conference Board’s consumer confidence index rose to 108.3 in December from 101.4 in November. That pushed the index to its highest level since April. Last month’s figure was the lowest since July.

Asian markets also got a lift from the overnight rally in tech shares, which spilled into trading in Hong Kong. E-commerce giant Alibaba jumped 4.8% while online services company Tencent gained 3.9%. Online shopping and food delivery platform Meituan picked up 5.7%.

The Hang Seng surged 528 points to 19,688.67, while the Shanghai Composite index added 0.2% to 3,075.81.

“Asian stocks picked up where the U.S. market left off, with technology and property companies leading the charge after a profusion of comments from regulators on supporting broader markets,” Stephen Innes of SPI Asset Management said in a commentary.

Tokyo’s Nikkei 225 was 0.5% higher at 26,525.91 and the Kospi in Seoul rose 0.7% to 2,347.49. In Sydney, the S&P/ASX 200 advanced 0.5% to 7,152.20.

Stocks closed broadly higher on Wall Street Wednesday, bringing major indexes into the green for the week.

The S&P 500 jumped 1.5% to 3,878.44 while the Dow Jones Industrial Average advanced 1.6% to 33,376.48, helped by a 12.2% surge for Nike after its earnings results trounced analysts’ estimates.

Technology companies powered a big share of Wednesday’s rally. Apple rose 2.4%.

The tech-heavy Nasdaq composite rose 1.5% to 10,709.37.

Small company stocks also gained ground. The Russell 2000 index rose 28.92 points, or 1.7%, to 1,776.94.

Consumer spending and the job market are strong areas for the U.S. economy that have helped prevent it from slipping into a recession. Wall Street is hoping for a “soft landing” from decades high inflation and the interest rate hikes being deployed to tame it.

The Fed’s key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, the highest level in 15 years. Fed policymakers are forecasting the rate will reach a range of 5% to 5.25% by the end of 2023 and won’t be cut before 2024.

If the Fed goes too far in raising interest rates, it could cause the economy to stall and tip into recession.

Treasury yields mostly fell. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.66% from 3.69 late Tuesday.

Other new data released Wednesday showed the nation’s housing market slowed further last month, as sales of previously occupied homes fell for the tenth month in a row. Rising mortgage rates are making an already tight housing market even more difficult for prospective homebuyers.

The government will release Friday a closely watched monthly snapshot of consumer spending, the personal consumption expenditure price index. The report is monitored by the Fed as a barometer of inflation, which has been easing, albeit at a slow pace. Economists expect the report to show inflation cooled in November.

In energy trading, U.S. benchmark crude oil added 47 cents to $78.76 per barrel in electronic trading on the New York Mercantile Exchange. It picked up $2.06 to $78.29 per barrel on Wednesday.

U.S. inventory data showed the Strategic Petroleum Reserve falling to 378.6 million barrels, its lowest level since 1983, thanks to a larger-than-expected draw down last week. That overrode worries about weak demand due to the slowing economy, pushing prices higher.

Brent crude, the pricing basis for international trading, gained 43 cents to $83.01 per barrel.

The U.S. dollar slipped to 131.92 Japanese yen from 132.42 yen. The euro rose to $1.0640 from $1.0606.

___

AP Business Writers Damian J. Troise and Alex Veiga contributed.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

The logo for OpenAI, the maker of ChatGPT, appears on a mobile phone, in New York, Tuesday, Jan. 31...
Associated Press

Cheaters beware: ChatGPT maker releases AI detection tool

ChatGPT is trying to curb its reputation as a freewheeling cheating machine with a new tool that can help detect if artificial intelligence wrote it
22 hours ago
This undated photo provided by the Grants Pass Police Department shows Benjamin Obadiah Foster. Fos...
Rio Yamat and Andrew Selsky, Associated Press

Oregon kidnap suspect previously released the day he arrived at prison

A man at the center of an intense police search in Oregon after a violent kidnapping last week was released from custody in October 2021 by Nevada prison officials on the same day he was transferred to the state's custody to serve a kidnapping sentence, authorities said Monday.
22 hours ago
FILE - Actor Alec Baldwin attends a news conference at United Nations headquarters, on Sept. 21, 20...
Associated Press

Baldwin faces involuntary manslaughter charge in set death

SANTA FE, N.M. (AP) — Prosecutors linked Alec Baldwin to an expansive list of alleged failures in firearms safety as they filed a felony involuntary manslaughter charge Tuesday against the actor in the fatal shooting of a cinematographer on a New Mexico movie set. Halyna Hutchins died shortly after being wounded during rehearsals at a […]
22 hours ago
A portrait of Tyre Nichols is displayed at a memorial service for him on Tuesday, Jan. 17, 2023 in ...
Associated Press

Family of Tyre Nichols prepares to lay him to rest

MEMPHIS, Tenn. (AP) — The family of Tyre Nichols planned to lay him to rest on Wednesday, three weeks after he was beaten to death by Memphis police after a traffic stop. In those three weeks, five police officers have been fired and charged with murder, and their specialized unit was disbanded. Two more officers […]
22 hours ago
NATO Secretary-General Jens Stoltenberg answers a question from students at Keio University in Toky...
Associated Press

NATO chief wants more ‘friends’ as Russia, China move closer

TOKYO (AP) — China’s growing assertiveness and collaboration with Russia poses a threat not only to Asia but also to Europe, NATO Secretary-General Jens Stoltenberg said Wednesday as he sought stronger cooperation and more “friends” for NATO in the Indo-Pacific region. Stoltenberg said China is increasingly investing in nuclear weapons and long-range missiles without providing […]
22 hours ago
Currency traders watch computer monitors at a foreign exchange dealing room in Seoul, South Korea, ...
Associated Press

Asian stocks higher ahead of Fed rate decision

BEIJING (AP) — Asian stock markets were higher Wednesday after Wall Street rose ahead of what traders hope will be the last Federal Reserve interest rate hike for some time. Shanghai, Tokyo, Hong Kong and Sydney advanced. U.S. futures declined. Oil prices gained. Traders assume the Fed will announce a rate hike of 0.25 percentage […]
22 hours ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Asian shares advance, Hong Kong up 2.8%, after Wall St rally