Asian shares rise tracking US indices

Bangkok: Shares advanced on Wednesday in Asia, tracking Wall Street gains following an easing of pressure from the bond market. US futures were little changed and oil prices rose slightly. In China, investor sentiment got a boost from a report by Bloomberg, citing unnamed sources, that the government is considering boosting spending on construction to support the economy.

China’s lackluster recovery from the blows to its economy during the Covid-19 pandemic has weighed heavily on regional and global growth. The Hang Seng in Hong Kong added 1.4 per cent to 17,919.55 and the Shanghai Composite index was up 0.2 per cent at 3,081.22. Tokyo’s Nikkei 225 index climbed 0.9 per cent to 32,019.42. In South Korea, the Kospi jumped 2.5 per cent, to 2,462.10 after Samsung Electronics reported improved quarterly earnings.

Samsung’s shares surged 4.4 per cent, while SK Hynix’s were up 3.3 per cent. Analysts say the worst of the post-pandemic contraction in demand for computer chips and electronic devices may be over. Australia’s S&P/ASX 200 advanced 0.6 per cent to 7,085.70. In India, the Sensex added 0.7 per cent and in Bangkok the SET was up 0.8 per cent.

Investors have taken heart amid signs that upward pressure on inflation in many economies may be easing, which would enable the Federal Reserve and other central banks to halt or reverse aggressive interest rate hikes meant to curb rising prices. On Tuesday, the S&P 500 gained 0.5 per cent to 4,358.24. The Dow Jones Industrial Average rose 0.4 per cent to 33,739.30, and the Nasdaq composite climbed 0.6 per cent to 13,562.84. PepsiCo rose 1.9 per cent after it reported stronger profit and revenue for its latest quarter than analysts expected.

Some of the strongest action was in the bond market, where Treasury yields eased after trading resumed following a holiday on Monday. It was the first opportunity for yields to move since the weekend’s surprise attack by Hamas on Israel injected caution into global markets. Perhaps more impactfully, it was also the first trading for Treasurys since speeches by Federal Reserve officials that traders took as a suggestion the Fed may not raise its main interest rate again. The comments helped US stocks swing from early losses to gains on Monday.