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Asian stocks rise after Wall Street breaks series of declines

BEIJING – Asian stocks rose Monday after Wall Street recovered from a seven-week string of declines and China eased anti-virus restrictions on operations in Shanghai and Beijing.

Shanghai, Tokyo, Hong Kong and Sydney have made progress. Oil stayed above $110 a barrel.

On Wall Street, the benchmark S&P 500 index ended Friday up 6.6%, its biggest weekly gain in 18 months, after rising inflation eased in April. US markets will remain closed on Monday for a public holiday.

“Markets rallied into the long weekend, setting a positive tone earlier this week,” ING economists said in a report.

The Shanghai Composite Index rose 0.5% to 3,145.77 after more factories and shops were allowed to reopen in Beijing and Shanghai. Shanghai, China’s commercial capital, announced tax breaks and subsidies to help businesses recover from a two-month shutdown.

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Tokyo’s Nikkei 225 rose 2.3% to 27,382.03 and Hong Kong’s Hang Seng rose 1.9% to 21,093.21. South Korea’s kospi rose 1.2% to 2,668.31.

Sydney’s S&P ASX 200 rose 1.4% to 7,2890.10.

India’s Sensex opened up 2.1% to 56,025.84. New Zealand and Singapore won while Indonesia retreated.

On Wall Street, the S&P 500 rose 2.5% to 4,158.24 on Friday, boosted by gains for technology companies.

Investors were relieved after Commerce Department data showed US inflation, prompting the Federal Reserve to hike interest rates. slowed to 6.3% over a year earlier in April, the first drop in 17 months.

Markets are worried about whether the Fed can control inflation, which is at a four-decade high, without plunging the world’s largest economy into recession.

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The Dow Jones Industrial Average rose 1.8% to 33,212.96. The technology-dominated Nasdaq gained 3.3% to 12,131.13.

The US market has slumped for the past two months on fears of interest rate hikes slowing economic activity and its impact Russia’s war against Ukraine and a Chinese economic slowdown.

Crude oil prices are up nearly 60% this year amid fears of supply disruptions from Russia, the world’s second-largest exporter. Wheat prices are up about 50% and corn prices are up 30%.

Disruptions in manufacturing and trade due to China’s shutdown of Shanghai and other industrial cities to combat virus outbreaks have also added to inflationary pressures.

more factories, Shops and other businesses are allowed to reopen this week in Shanghai and the Chinese capital Beijing after authorities declared the outbreaks under control. The Shanghai municipal government promised rent and tax cuts, faster building permits and more subsidies for electric car purchases.

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In energy markets, the reference price for US crude rose 88 cents to $115.95 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price base for international oils, rose 79 cents to $116.35 a barrel in London.

The dollar fell to 127.03 yen from 127.10 yen on Friday. The euro rose to $1.0755 from $1.0733.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, transcribed or redistributed without permission.

https://www.local10.com/business/2022/05/30/asian-stocks-rise-after-wall-st-breaks-string-of-declines/ Asian stocks rise after Wall Street breaks series of declines

Sarah Y. Kim

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