Stocks in Asia traded higher on Friday after a rally in Wall Street last night despite a higher-than-expected inflation data for September.
As of 10:40 BKK time on October 14, 2022, Nikkei rose 3.44%, Shanghai Composite gained 1.73%, Hang Seng Index soared 3.38%, Kospi increased 2.46% and ASX 200 hiked 1.82%.
Thailand’s SET Index was closed for holiday,
Asian markets are trading positively after Wall Street closed the session with Dow Jones gaining nearly 3%.
Dow Jones closed at 30,038.72 points, increased 827.87 points or 2.83%. Meanwhile, S&P 500 gained 2.60% and Nasdaq rose 2.23%.
Yesterday, Wall Street made a sharp turnaround from steep losses in a volatile session on Thursday as investors digested inflation data for September that came out slightly higher than expected.
Some economists believed that the higher-than-expected inflation data might indicate that a rise in prices should peak soon. Moreover, the data also showed that gasoline prices decreased by 4.9%, though a rise in food prices and owners’ equivalent rent offset those declines.
Inflation data for September came in at 8.2% YoY, a slight decrease compared from a reading of 8.3% in August, but still higher than 8.1% expected by economists. Meanwhile, core CPI also increased to 6.6% YoY from 6.3% and a consensus forecast of 6.5%.
With strong job reports in September and the unemployment rate that fell to 3.5%, the market is now fully priced in the probability of a 75 basis point increase in policy rate at the Fed’s meeting in November, which would be its fourth straight hikes at this pace. The probability for the fifth hike at the same rate also increased to 62% after the release of inflation data.