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Asian markets opened higher after a good close on Wall Street. Investors are eagerly awaiting a key US inflation report later in the day, which may set the tone for the Federal Reserve final meeting of the year on Wednesday.
US futures and oil prices have risen.
Tokyo’s Nikkei 225 added 0.5% to 32,959.50. Data released on Tuesday showed that consumer prices in Japan rose 0.3% from a year ago in November, which marked the slowest increase in nearly three years, and showed there is a decrease in the economic value of the economy.
Hong Kong’s Hang Seng gained 1.1% to 16,367.00, and the Shanghai Composite was 0.1% higher, at 2,993.65.
Chinese leaders are holding an annual economic conference that is expected to conclude on Tuesday with pledges to stimulate sustainable growth.
In Seoul, the Kospi rose 0.4% to 2,534.15. Australia’s S&P/ASX 200 rose 0.5% to 7,233.90.
India’s Sensex gained 0.2%, while the SET in Bangkok lost 0.3%.
On Monday, the S&P 500 rose 0.4% to 4,622.44, finishing at its highest level in 20 months. The Dow gained 0.4% to 36,404.93 and the Nasdaq added 0.2% to close at 14,432.49.
Earnings sentiment after six weeks was bested by major stock brands. The S&P 500 is up 20.4% for the year and the Nasdaq is up 37.9%.
Cigna rose 16.7% to become the biggest gainer among S&P 500 stocks after the health insurer announced a $10 billion share buyback, and the Wall Street Journal reported that no more the company pursued a fight with Humana.
Macy’s rose 19.4% after reports that a group of investors is launching a bid to take over the retailer for $5.8 billion.
On Tuesday, the government will submit its report in November increase in customers. Analysts expect the report to show a continued slowdown in inflation to 3.1% from 3.2% in October. On Wednesday, the Government will announce its November report on the price of goods on the wholesale level, which is also expected to show the reduction in the cost of the economy.
Wall Street is so bullish that the Fed will keep its interest rate between 5.25% and 5.50% in early 2024 and rates could begin to decline in the middle of that year. Analysts are also increasingly optimistic about the possibility that the central bank will be able to pull off a “soft policy,” which is aimed at reducing inflation under high interest rates without crashing. The economy is in a recession.
“With inflation falling faster than expected, it looks like the Fed will hold off on rate hikes,” said Brian Rose, a senior U.S. economist. at UBS, in a letter to investors. “At the same time, inflation is still high and the labor market is still tight enough for the Fed to consider lowering rates.”
Strong consumer spending and a stable labor market have provided protection for the broader economy, which has slowed growth but has so far avoided a crisis. The government’s work report on Friday showed that US workers add more jobs last month than expected by the economy. Workers’ wages rose higher than expected, and the unemployment rate unexpectedly improved.
Many large companies will report their earnings this week and are among the few remaining to announce their results. Software company Adobe will report on Wednesday and Olive Garden owner Darden Restaurants will announce its results on Friday.
There is very little change in income levels. The yield on the 10-year Treasury remained at 4.22%.
In energy trading, U.S. crude added 25 cents to $71.57 a barrel in electronic trading on the New York Mercantile Exchange. . It gained 0.1% Monday. Brent crude, the international standard, rose 24 cents to $76.27 a barrel.
The US dollar fell to 145.60 Japanese yen from 146.16 yen. The Euro rose to $1.0769 from $1.07613.
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AP Business Writers Alex Veiga and Damian J. Troise contributed.