Asian Equity Markets Surge as US Inflation Slows
Asian stocks rose on Thursday as investors welcomed the news that US inflation had cooled in April. The latest data revealed that consumer prices increased at a slower-than-expected rate, providing some respite from the recent spike in inflationary pressure. This was welcome news to Asian markets, with many of the region’s major indices recording gains across the board.
The Nikkei 225 index closed up 0.9%, while Hong Kong’s Hang Seng Index also gained 1%. South Korea’s Kospi Composite and Australia’s ASX 200 both posted modest increases of 0.3% and 0.2%, respectively, while China’s Shanghai Composite edged higher by just over one-tenth of a percent (0.1%).
Analysts attributed much of this positive sentiment to easing concerns about rising prices due to reduced demand for goods during pandemic lockdowns around the world last year combined with an increase in supply as economies reopen more widely now vaccines are becoming available globally; this has helped contain price rises, which would otherwise have been expected given current market conditions, such as low-interest rates and high levels of government spending on stimulus measures designed to support economic recovery post covid19.Read more at Reuters