Asian stocks track Wall St ahead of US data

Beijing: Asian stock markets followed Wall Street higher on Tuesday ahead of an update on US consumer prices that traders hope will show inflation is easing, reducing the need for more interest rate hikes.

Shanghai, Tokyo, Hong Kong and Sydney advanced. Oil prices rose. Wall Street’s benchmark S&P 500 index gained 0.2% on Monday following its second weekly decline in two months. Traders looked ahead to Wednesday’s update on US consumer prices for signs of whether the Federal Reserve might decide inflation has cooled enough following a year of interest rate hikes. They hope the US central bank will decide no more are needed, though Fed officials suggest as many as two more increases are possible this year. Forecasters expect inflation in June to fall to 3.1% from the previous month’s 4%. That still would be higher than the Fed’s 2% target but down sharply from last year’s peak above 9%. “They will have a hard time justifying further rate increases if headline inflation - which is their mandate - is moving convincingly towards target,” said Rubeela Farooqi of High Frequency Economics in a report. The Shanghai Composite Index gained 0.6% to 3,221.37 while the Nikkei 225 in Tokyo lost added less than 0.1% to 32,203.57. The Hang Seng in Hong Kong advanced 1.1% to 18,679.92. The Kospi in Seoul surged 1.7% to 2,562.49 and Sydney’s S&P/ASX 200 jumped 1.5% to 7,108.90. India’s Sensex opened up 0.6% at 65,759.59.

New Zealand declined while Southeast Asian markets advanced. Investors want to see whether the US economy can avoid a long-predicted recession after a run-up in the Fed’s benchmark lending rate to cool inflation. They expected at least a brief recession starting this quarter but are more optimistic after US hiring stayed strong. On Wall Street, the S&P 500 rose to 4,409.53. The Dow Jones Industrial Average climbed 0.6% to 33,944.40.

The Nasdaq composite added 0.2% to 13,685.48. FMC, which sells herbicides, insecticides and other products to the agricultural industry, tumbled 11.1% for the biggest loss in the S&P 500 after it warned of a sudden drop in business around much of the world toward the end of May as partners burned through inventory levels. It said the “unforeseen and unprecedented” declines would hurt its results for the spring and full year.