Asian Shares Rebound as Wall Street Sees Gains in Bank Stocks

Shares in Asia rebounded on Wednesday, following a rally in bank stocks on Wall Street on hopes that the worst of the global fallout from the American banking sector had passed; US inflation also came in line with expectations.

As of 9:36 a.m. (Bangkok time), the Hang Seng index in Hong Kong rose by 2.08%, with the Hang Seng Tech index having gained 3%. The Shanghai Composite Index climbed 0.58% in mainland China.

The unemployment rate in South Korea decreased marginally from January to February, which helped boost the Kospi by 1.87%.

The Nikkei 225 added 0.26% in Japan. The S&P/ASX 200 index in Australia advanced 0.43%.

According to a report released by the Labor Department on Tuesday, the annual growth rate for the consumer price index in the United States slowed in February to 6.0% from the previous year.

Last month’s increase of 6% was the lowest level since September 2021, and the eighth consecutive annual drop.

Removing volatile food and energy costs, core inflation fell to 5.5% in February, marking the fifth consecutive YoY fall and the lowest level since November 2021.

Both indices were in line with market forecasts, suggesting the Federal Reserve will proceed with plans to raise interest rates in the near future.

The Dow Jones Industrial Average ended the day up 1.06% after having dropped for five consecutive days. The S&P 500 gained 1.65%, and the Nasdaq Composite rose 2.14%.