Canberra, July 8, (dpa/GNA) - Asian stocks followed Wall Street higher on Friday, amid hopes that major central banks will tackle inflation without causing a recession.
US Federal Reserve governors Christopher Waller and St Louis Fed President James Bullard both backed another big interest rate rise in July but downplayed recessionary fears. The US non-farm payroll report due later in the day is expected to show that job creation slowed in June.
Elsewhere, Boris Johnson announced his intention to resign as British prime minister, easing the political chaos in that country.
Chinese shares gave up early gains to end slightly lower, as concerns about rising Covid-19 case counts overshadowed expectations that China could deliver a 1.5-trillion-yuan ($220 billion) stimulus to boost growth.
Investors also awaited an announcement on easing tariffs involving Chinese goods.
The benchmark Shanghai Composite index closed 0.25% lower, at 3,356.08, while Hong Kong’s Hang Seng index edged up 0.38% to 21,725.78.
Japanese shares pared early gains to end marginally higher. The Nikkei average ended 0.10% higher, at 26,517.19, while the broader Topix index edged up 0.27% to settle at 1,887.43.
Technology stocks such as Advantest, Screen Holdings and Tokyo Electron rose about 2% each in response to less hawkish comments from Fed officials. Sumitomo Metal Mining surged 5.2% and Mitsubishi Materials rallied 2.9% after Reuters reported that China will set up a state infrastructure investment fund worth 500 billion yuan ($74.69 billion) to spur infrastructure spending.
Seoul stocks rose for a second straight session as concerns about an economic downturn eased. The Kospi average advanced 0.70% to 2,350.61. Carmaker Hyundai Motor rose 1.7%, chemical maker LG Chem jumped more than 3% and battery maker LG Energy Solution soared 3.9%.
Australian markets ended higher, with energy stocks leading the surge after oil prices rebounded from a two-day decline. Santos rallied 2.3% and Beach Energy surged 4.3%. The benchmark S&P/ASX 200 rose 0.45%, to 6,678 while the broader All Ordinaries index ended 0.59% higher, at 6,877.
Across the Tasman, the benchmark S&P/NZX-50 index gained 0.51% to close at 11,169.24.
US stocks rose for a fourth straight session overnight as a falling trend in commodity prices tempered investor expectations over inflation and interest-rate hikes. The Dow rallied 1.1%, the S&P 500 jumped 1.5% and the technology-heavy Nasdaq Composite surged 2.3%.
GNA