WORLD

Stock market today: Asia markets higher ahead of US inflation, Fed rates decision

Jun 11, 2023, 10:15 PM | Updated: Jun 12, 2023, 10:38 pm

A person holding an umbrella in the rain walks in front of an electronic stock board showing Japan'...

A person holding an umbrella in the rain walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, June 12, 2023, in Tokyo. Shares were mixed in Asia on Monday after the S&P 500 logged its fourth winning week in a row, while investors await another decision by the Federal Reserve on interest rates. (AP Photo/Eugene Hoshiko)
Credit: ASSOCIATED PRESS

(AP Photo/Eugene Hoshiko)

BEIJING (AP) — Asian stock markets were mostly higher Tuesday ahead of a U.S. inflation update and a Federal Reserve decision on another possible interest rate hike.

Shanghai declined while Tokyo and Hong Kong advanced. Oil prices rebounded from Monday’s plunge.

Wall Street’s benchmark S&P 500 index rose 0.9% to a 14-month high ahead of the release of U.S. inflation figure Tuesday. Forecasters expect it to show inflation eased in May but still was double the Fed’s 2% target despite interest rate hikes to cool business activity.

Traders hope the Fed will skip another rate increase when its monthly board meeting ends Wednesday, but that might be complicated if inflation is higher than expected. Central banks in Europe and Japan also are due to meet this week to discuss possible rate hikes.

The Fed’s benchmark lending rate is at a 16-year high, which has led to a contraction in manufacturing activity and three high-profile bank failures.

“The bull market rally looks like it doesn’t want to stop,” said Edward Moya of Oanda in a report. “Wall Street appears confident that the Fed will not be delivering its 11th straight rate hike this week.”

The Shanghai Composite Index lost less than 0.1% to 3,226.89 after China’s central bank lowered its one-week lending rate for the first time since last summer. That appeared to reflect official concern about the health of China’s economic recovery after growth in factory and consumer activity weakened.

The Nikkei 225 in Tokyo surged 1.9% to 33,053.90 and the Hang Seng in Hong Kong advanced 0.4% to 19,478.55.

The Kospi in Seoul added 0.6% to 2,644.78 and Sydney’s S&P-ASX 200 was 0.1% higher at 7,129.50.

New Zealand and Bangkok advanced while Singapore and Jakarta declined.

On Wall Street, the S&P 500 rose Monday to 4,338.93 and its highest close since April 2022.

The Dow Jones Industrial Average gained 0.6% to 34,066.33. The Nasdaq composite rallied 1.5% to 13,461.92.

Investors see high-growth stocks as some of the biggest beneficiaries of lower rates, and they led the market Monday. Tech stocks alone accounted for more than half the S&P 500’s gain, powered by gains of at least 1.5% for both Microsoft and Apple.

Forecasters expect Tuesday’s inflation update to show consumer prices rose 4.1% over a year earlier last month. That would be down from April’s 4.9% and last June’s peak above 9% but more than double the Fed target of 2%.

Two Fed board members have said the Fed should hold off on a rate increase this week while it gathers data on the impact of previous hikes.

On Monday, Switzerland’s UBS said it has completed its takeover of rival Credit Suisse in a government-arranged rescue combining the country’s two largest banks.

In energy markets, benchmark U.S. crude rose 36 cents to $67.48 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $3.05 on Monday to $67.12. Brent crude, the price basis for international oil trade, gained 54 cents to $72.38 per barrel in London. It lost $2.95 the previous session to $71.84.

The dollar declined to 139.40 yen from Monday’s 139.62 yen. The euro advanced to $1.0778 from $1.0756.

World

Associated Press

British coroner criticizes US government over death of teen motorcyclist Harry Dunn in 2019

LONDON (AP) — A British coroner criticised the U.S. government on Thursday over a lack of training for diplomatic personnel prior to a road accident in August 2019 that saw a teenage motorcyclist killed by one of its employees. At the end of a four-day inquiry into the accident outside RAF Croughton, an air base […]

10 hours ago

Associated Press

Israelis and Palestinians are hopeful but cautious over the latest cease-fire proposal

TEL AVIV, Israel (AP) — A proposed cease-fire deal between Israel and Hamas is raising hopes that eight months of fighting could soon come to an end. Displaced Palestinians are desperate to return home and rebuild, while Israelis yearn for dozens of captives taken by Hamas to be freed. The U.S.-backed proposal is the latest […]

11 hours ago

Associated Press

US reporter Evan Gershkovich, jailed in Russia on espionage charges, to stand trial, officials say

MOSCOW (AP) — U.S. reporter Evan Gershkovich, jailed in Russia on espionage charges, will stand trial in the city of Yekaterinburg, Russian authorities said Thursday. Russia’s Prosecutor General’s office said an indictment of Gershkovich has been finalized and his case was filed to the Sverdlovsky Regional Court in the city in the Ural Mountains. Gershkovich […]

14 hours ago

Associated Press

Stock market today: Global shares are mixed as US price data raise hopes for a Fed rate cut

TOKYO (AP) — Global shares were trading mixed on Thursday after the Federal Reserve opted to keep its benchmark interest rate unchanged. Shares were mostly lower in early trading in Europe as leaders of the Group of Seven leading industrialized nations were gathering in Italy in the wake of the European Parliament election that saw […]

20 hours ago

Associated Press

Jittery markets rally after Argentina’s Milei gets his first legislative ‘triumph’ on broad reforms

BUENOS AIRES, Argentina (AP) — Wall Street rallied Thursday as Argentina’s President Javier Milei traveled to Italy for the Group of Seven summit, buoyed by his first legislative victory after the Senate passed sweeping proposals to slash state spending and boost his powers. Having hitched his political fortunes to the goal of cutting down Argentina’s […]

21 hours ago

Associated Press

G7 summit opens with deal to use Russian assets for Ukraine as EU’s traditional powers recalibrate

BARI, Italy (AP) — A Group of Seven summit is opening Thursday with agreement on a U.S. proposal to back a $50 billion loan to Ukraine using frozen Russian assets as collateral, giving Kyiv a strong show of support even as Europe’s political chessboard shifts to the right. Diplomats confirmed that an agreement had been […]

23 hours ago

Stock market today: Asia markets higher ahead of US inflation, Fed rates decision