Asian stocks rise after Wall Street rally led by tech stocks

TOKYO (AP) — Global stocks rose on Wednesday following a rally on Wall Street led by technology companies.

Benchmarks edged higher in Europe in early trading, while equities ended higher across Asia despite concerns over rising energy costs. The dollar rose against the Japanese yen as US futures fell.

France’s benchmark CAC 40 rose 0.1% in early trading to 6,667.05, while Germany’s DAX gained 0.3% to 14,516.18. Britain’s FTSE 100 rose 0.3% to 7,500.58. Dow Jones and S&P 500 futures were down 0.1%.

Investors were watching closely for what might happen with President Joe Biden attending a NATO meeting and Thursday’s EU summit in Europe, where sanctions and the Russian oil embargo are likely to top the list. ‘agenda.

Ukrainian President Volodymyr Zelenskyy was due to deliver a highly anticipated online speech to the Japanese parliament. Japan, which abided by a pacifist constitution after its defeat in World War II, has taken an unusually vocal stance on the war in Ukraine, joining sanctions against Russia alongside Western nations.

Japan’s benchmark Nikkei 225 jumped 3.0% to end at 28,040.16. Telecommunications and technology company SoftBank Group Corp. gained 7.2% and Fast Retailing gained 5.2%.

Australia’s S&P/ASX 200 added 0.5% to 7,377.90. The South Korean Kospi gained 0.9% to 2,735.05. Hong Kong’s Hang Seng jumped 1.2% to 22,154.08, while the Shanghai Composite rose 0.3% to 3,271.03.

Shares of Chinese networking equipment maker ZTE Corp. briefly climbed almost 27% and closed 10% after the company said a US judge had allowed a probationary period to end after the company was nearly destroyed in a clash with Washington in the about its relations with Iran. and North Korea.

Bond yields rose sharply for the second day in a row, reflecting expectations of more aggressive interest rate hikes from the Federal Reserve as the central bank moves to stifle the highest inflation in decades . The 10-year Treasury yield climbed to 2.37% on Wednesday. The yield, which influences interest rates on mortgages and other consumer loans, was 2.14% Friday night.

Bond yields rose after Federal Reserve Chairman Jerome Powell said the central bank was ready to act more aggressively to raise interest rates in its fight against inflation if needed.

Last Wednesday, the central bank announced a quarter-point rate hike, its first interest rate hike since 2018. The Fed has not raised its key rate by half a point since May 2000.

Energy and commodity prices were already high as demand outstripped supply amid the global economic recovery, but the war in Ukraine pushed prices for oil, wheat and others even higher. high. These higher costs and shipping issues make operations more expensive for businesses. Many of these costs have been passed on to consumers, and rising prices for food, clothing, and other goods could cause them to cut back on spending, leading to slower economic growth.

In energy trading, benchmark U.S. crude added $1.14 to $110.41 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international price standard, rose $1.51 to $116.99 a barrel.

“With few levers left to put pressure on Russia short of military intervention, the market is beginning to price in the loss of a significant amount of Russian oil that needs to be backfilled. It could take years for Russian oil markets to normalize, if ever,” said Stephen Innes, managing partner at SPI Asset Management.

Investors will soon begin to prepare for the next round of corporate earnings reports as the current quarter draws to a close at the end of March, which could provide a clearer picture of how industries continue to manage the rise. costs.

In currency trading, the US dollar rose slightly to 121.04 Japanese yen from 120.81 yen. The euro traded at $1.1020, down from $1.1033.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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