Asian stock markets mostly rise as cooler U.S. inflation reading inspires risk-on buying

The past weeks global stock rebound continued in the Asia Pacific region on Friday, following on fresh gains in the U.S. as worries about aggressively higher interest rates eased.

A report showing a weaker-than-expected increase for U.S. consumer prices in April helped push the dollar
DXY, -0.02%
and bond yields lower after recent gains, cooling concerns of a more-aggressive pace of rate increases from the Federal Reserve.

The inflation reading is a positive setup for Asian equities, said James Cheo, a senior investment strategist at Bank of Singapore, providing investors some reassurance that inflation remains well checked.

Gains of more than 0.5% were seen early in many Asia-Pacific stock indexes, with Japans Nikkei Stock Average
NIK, +1.08%
up 0.8% despite the dollars decline. The WSJ Dollar Index
BUXX, -0.02%
drop was the biggest in seven weeks. A stronger yen
USDJPY, +0.02%
often pressures Japanese stocks lower.

Meanwhile, Singapores Straits Times Index
STI, +0.57%
rose 0.5% following Thursdays underperformance in the wake of a surprise opposition win in elections in neighboring Malaysia. Markets there remain closed until Monday; a U.S.-listed exchange-traded fund of Malaysian stocks rebounded 1.8% following a 6% plunge Wednesday.

Around the region, Chinas Shanghai Composite
SHCOMP, -0.08%
slipped 0.1%. Hong Kongs Hang Seng
HSI, +1.36%
was up 0.9%. In Australia, its leading stock average
XJO, +0.12%
rose 0.3%.

Oil futures
CLM8, -0.08%
were little changed in Asia after hitting their highest levels in more than three years Thursday.

Related Topics Asia Markets China Japan Australia Singapore Foreign Investment

Quote References DXY -0.02 -0.02% NIK +242.05 +1.08% BUXX -0.02 -0.02% USDJPY +0.02 +0.02% STI +20.24 +0.57% SHCOMP -2.51 -0.08% HSI +418.62 +1.36% XJO +7.60 +0.12% CLM8 -0.06 -0.08% Show all references
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