Stock market today: Asian shares rise ahead of a US inflation update on hopes for easing rate hikes
Asian stock markets followed Wall Street higher Tuesday ahead of an update on U.S. consumer prices that traders hope will show inflation is easing, reducing the need for more interest rate hikes
BEIJING — Asian stock markets followed Wall Street higher Tuesday ahead of an update on U.S. consumer prices that traders hope will show inflation is easing, reducing the need for more interest rate hikes.
Shanghai, Tokyo, Hong Kong and Sydney advanced. Oil prices rose.
Wall Street's benchmark S&P 500 index gained 0.2% on Monday following its second weekly decline in two months.
Traders looked ahead to Wednesday's update on U.S. consumer prices for signs of whether the Federal Reserve might decide inflation has cooled enough following a year of interest rate hikes. They hope the U.S. central bank will decide no more are needed, though Fed officials suggest as many as two more increases are possible this year.
Forecasters expect inflation in June to fall to 3.1% from the previous month's 4%. That still would be higher than the Fed's 2% target but down sharply from last year's peak above 9%.
“They will have a hard time justifying further rate increases if headline inflation — which is their mandate — is moving convincingly towards target,” said Rubeela Farooqi of High Frequency Economics in a report.
The Shanghai Composite Index gained 0.2% to 3,208.38 and the Nikkei 225 in Tokyo added 0.3% to 32,279.8. The Hang Seng in Hong Kong advanced 1% to 18,655.50.
The Kospi in Seoul surged 1.4% to 2,555.09 and Sydney's S&P-ASX 200 jumped 1.1% to 7,078.50.
New Zealand declined while Southeast Asian markets advanced.
Investors want to see whether the U.S. economy can avoid a long-predicted recession after a run-up in the Fed's benchmark
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