Asian Markets Close Higher After Inflation Worries Ease

Arjun Pandit
11 Aug, 2022
New York City

Stocks in Asia advanced on the rising hopes that the future U.S. rate hikes will be moderate after the U.S. inflation cooled in July. 

Inflation around the world is easing after crude oil prices continued to fall and extended the six-month loss to 29% from the peak of $121.30 a barrel on March 8. 

Benchmark indexes opened sharply higher after the U.S. consumer price index eased in July to 8.5% from a year ago but still stayed near the four-decade high.  

On a monthly basis, prices were flat. 

U.S. petrol prices at retail locations have declined for 57 days in a row from the peak of $5.23 to $4.14 a gallon. 

Moreover, German consumer price growth eased in July to 7.5% from 7.6% in June and matched the preliminary estimates, according to the Federal Statistical Office data on Wednesday. Consumer prices increased 7.9% in May. 

Markets in Japan were closed today to celebrate the Mountain Day. 

The popular indexes in India traded in a tight range in the session as buyers added positions in tech, consumer products, and financial stocks. 

The Sensex index closed up 515.31 points, or 0.88% to 59,332.60 and the Nifty index closed up 124.25 or 0.7% to 17,659. 

The rupee advanced to 79.21 against the U.S. dollar following the easing of worries of larger U.S. interest rate hikes at the next policy meeting in about five weeks. 

The Shanghai Composite Index rallied 1.6 percent to 3,281.67, while Hong Kong's Hang Seng Index spiked 2.4 percent to 20,082.43.

Longfor Group Holdings jumped 5.7% to HK$22.10 after the real estate company denied rumors that it missed its latest payment for commercial paper. 

Real estate companies have been under a close scrutiny after mortgage boycotts have spread to several smaller cities on mainland China. 

The Kospi index in Seoul, Korea jumped 1.7% to close at 2,523.78 following the advances in Asian markets. 

LG Chem, LG Energy Solution, and Samsung Electronics advanced between 1% and 3%. 

The ASX 200 Index advanced 1.1% to 7,071 and the broader All Ordinaries Index ended 1.2% higher at 7,325.40.

Resource stocks led the gainers with BHP Billiton, Santos, Fortescue, and Rio Tinto increased between 1% and 3%.