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Asian stocks follow Wall St higher with China, Korea closed

Stock prices in Tokyo and Sydney have followed Wall Street higher while China, South Korea and Southeast Asian markets were closed for the Lunar New Year

Via AP news wire
Wednesday 02 February 2022 05:13 GMT
Japan Financial Markets
Japan Financial Markets (Copyright 2022 The Associated Press. All rights reserved.)

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Stock prices in Tokyo and Sydney followed Wall Street higher Wednesday while China South Korea and Southeast Asian markets were closed for the Lunar New Year.

Wall Street's benchmark S&P 500 index gained 0.7% on Tuesday, boosted by gains for energy and tech stocks in a late burst of buying.

The Nikkei 225 in Tokyo rose 1.8% to 27,552.61 and Sydney's S&P-ASX 200 added 1.3% to 7,094.80.

India's Sensex opened up 0.9% at 59,403.16. New Zealand's benchmark gained 1.9% after the government reported record-low unemployment of 3.2% in the final quarter of 2021. Jakarta also advanced.

U.S. stocks are coming off their worst month since early in the pandemic nearly two years ago.

Investors are trying to figure out how the economy and corporate profits will be affected by upcoming Federal Reserve rate hikes, intended to cool inflation that has surged to a four-decade high.

On Tuesday, the S&P 500 rose to 4,546.54. It is 5.2% below the Jan. 3 all-time high.

The Dow Jones Industrial Average gained 0.8% to 35,405.24. The Nasdaq composite added 0.7% to 14,346.

Exxon Mobil rose 6.4% after the company reported strong fourth quarter profit. Hewlett Packard Enterprise rose 2.9%.

The virus pandemic is still a lingering threat and each new variant could bring a surge of cases that threatens businesses and consumer activity.

Fed officials said in mid-December that plans to wind down bond purchases and other stimulus that are boosting prices would be accelerated to cool inflation.

Consumers have kept spending despite price rises, but forecasters retail purchases might weaken and crimp economic growth.

Investors expect the Fed to hike rates at least four times this year, starting in March.

On Friday, the Labor Department reports U.S. employment for January.

In energy markets, benchmark U.S. crude gained 27 cents to $88.47 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 5 cents on Tuesday to $88.20. Brent crude, the price basis for international oils, added 30 cents to $89.46 per barrel in London. It fell 10 cents the previous session to $89.16.

The dollar edged up to 114.76 yen from Tuesday's 114.71 yen. The euro rose to $1.1274 from $1.1254.

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