Asia stocks rise after Wall St rally

Asia stocks rise after Wall St rally

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Hong Kong: After a record lead on Wall Street, Asian stock markets rose in early trading on Monday.

In Hong Kong, the Hang Seng Index rose 1.03%, while the Tokyo benchmark Nikkei 225 Index rose 1.09%.

Wall Street rose on Friday, with the S&P 500 index rising more than 0.9% to close at 4,712.02 points, breaking the previous month’s record, even though the consumer price index rose by 6.8% in November.

This rise in inflation indicates that the Fed’s ultra-loose monetary policy should be sooner rather than later, and the market has been waiting nervously for several months of change.

Federal Reserve Chairman Jerome Powell has already expressed plans to accelerate the reduction of stimulus payments. Many analysts expect the central bank to raise interest rates at least twice in 2022.

After a two-day policy meeting, Powell will update the market this week.

But traders calmly dealt with these data, partly because inflation is largely expected.

In Asia Monday, Singapore, Seoul and Taipei and Wellington were marginally up. Shanghai also rose.

In Tokyo, “the market is looking at the Bank of Japan’s Tankan” quarterly business survey, released 10 minutes before the opening bell, senior market analyst Toshiyuki Kanayama of Monex said.

The latest survey showed Japan’s major manufacturers remain cautious about the economy’s trajectory, with business sentiment flat for the quarter as concerns about the pandemic linger.

Some investors may take a wait-and-see attitude ahead of the Fed meeting, analysts added.

“Global equities had a solid run last week and we’ll see if the goodwill lasts into what is a behemoth when it comes to event risk,” Chris Weston, head of research with Pepperstone Financial, wrote in a note.

He added that the latest news about the Fed and the Omicron coronavirus variant should determine market sentiment.

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