- France vows to step up drugs fight after police vehicles torched
- Air France says jet flew over Iraq during Iran attack on Israel
- Activists target Picasso work to protest Israel arms sales
- Let 'Emily in Paris' remain in Paris, Macron says
- Global stocks diverge as Chinese shares tumble
- Time runs out in Florida to flee Hurricane Milton
- Chad issues warning ahead of more devastating floods
- Record-breaking Root helps England dominate Pakistan in first Test
- German govt sees economy shrinking again in 2024
- Ex-UK soldier denies passing secrets to Iran intelligence
- Creator's death no bar to new 'Dragon Ball' products
- Three Kosovo Serbs on trial over 'secession plot' attack
- Van Gogh museum to launch Impressionism show
- French minister ups ante in Eiffel Tower Olympic rings row
- Japan PM calls snap election to 'create a new Japan'
- German police shut pro-Palestinian camp over Thunberg invite
- Chinese stocks tumble on lack of fresh stimulus
- Trio wins chemistry Nobel for protein design, prediction
- SE Asian summit urges end to Myanmar violence but struggles for solutions
- Wimbledon replaces line judges with electronic system
- Record-breaking Root hits hundred as England power to 351-3
- Record-breaking Root hits hundred as England's power to 351-3
- Sabalenka relishes 'much-needed' tennis rivalry with Swiatek
- Liverpool goalkeeper Alisson set for six weeks out
- Taylor Swift got police escort to London gigs after Austria terror plot
- Cook tips Root to break Tendulkar's all-time runs record
- British skull auction sparks Indian demand for return
- Joe Root: England's elegant Test record-breaker
- Braving war: Lebanon's 'badass' airline defies odds
- Klopp to return as head of Red Bull football operations
- Hezbollah strikes Israel, says it foiled Israeli incursions
- Jurgen Klopp to return as head of Red Bull football operations
- Sinner to face Medvedev in Shanghai Masters quarter-finals
- US weighs Google breakup in landmark trial
- Record-breaking Root guides England to 232-2 in reply to Pakistan's 556
- Japan PM dissolves parliament for 'honeymoon' snap election
- Chinese stocks tumble on stimulus upset, Asia tracks Wall St higher
- 7-Eleven owner confirms new takeover offer from Couche-Tard
- Goodbye Tito? Tomb at risk as Serbs argue over Yugoslav legacy
- Restoration experts piece together silent Sherlock Holmes mystery
- Sinner avoids Shanghai deja vu with assured Shelton win
- Pyongyang to 'permanently' shut border with South Korea
- Trumpet star Marsalis says jazz creates 'balance' in divided world
- No children left on Greece's famed but emptying island
- Nepali becomes youngest to climb world's 8,000m peaks
- Climate change made deadly Hurricane Helene more intense: study
- A US climate scientist sees hurricane Helene's devastation firsthand
- Padres edge Dodgers, Mets on the brink
- Can carbon credits help close coal plants?
- With EU funding, Tunisian farmer revives parched village
GSK | -0.03% | 38.01 | $ | |
CMSD | -0.17% | 24.81 | $ | |
SCS | 2.14% | 13.06 | $ | |
NGG | -0.43% | 65.62 | $ | |
BTI | 0.28% | 35.32 | $ | |
AZN | -0.16% | 76.75 | $ | |
CMSC | 0.28% | 24.64 | $ | |
RIO | -1.26% | 65.83 | $ | |
RYCEF | -1.01% | 6.9 | $ | |
JRI | 0.45% | 13.22 | $ | |
BCC | 0.87% | 143.27 | $ | |
BCE | 0.27% | 33.6 | $ | |
RELX | -0.18% | 46.555 | $ | |
BP | -0.69% | 31.81 | $ | |
RBGPF | -2.48% | 59.33 | $ | |
VOD | 0.26% | 9.685 | $ |
Asian markets extend gains after Wall St rally
Asian markets extended gains Wednesday, tracking a rally in New York, on optimism that the Federal Reserve's plan to hike interest rates will help bring inflation under control.
While there remains plenty of concern about the war in Ukraine, analysts said some confidence had seeped back into trading floors as investors bet on consumer resilience as economies continue to reopen.
Fed boss Jerome Powell said Monday that the central bank was prepared to act more aggressively on lifting borrowing costs if inflation -- already at a 40-year high -- does not fall quickly enough.
Officials lifted rates last week by a quarter of a point but some have advocated hikes of half a point, a view Powell suggested he was open to, adding that he was happy the economy was strong enough to withstand such a move.
While the faster and steeper rate of hikes would make it costlier for investors to borrow, commentators said the Fed's stance gave them confidence it could get a grip on prices.
"We are positive for equities for this year," Seema Shah, of Principal Global Investors, told Bloomberg Television.
She added that while the near-term outlook would be challenging with recession risks rising, "we still think the US economy is pretty good fundamentally".
"Faster hikes are clearly going to help inflation come down," which may reduce the need for a longer tightening campaign.
All three main indexes on Wall Street rallied Tuesday, with the Nasdaq piling on two percent.
And Asia took up the baton in early trade, with Tokyo jumping more than two percent and Hong Kong continuing to bask in a tech rally fuelled by China's pledge of support for markets.
Shanghai, Seoul, Sydney, Singapore, Taipei and Jakarta were also on the front foot, though Manila and Wellington dipped.
"The market appears to be unfazed by the risks that have haunted it for the first quarter and appear ready to grind higher with conviction," said market strategist Louis Navellier.
"It appears that the long-awaited reopening trade has finally begun in earnest, despite the baggage of Ukraine and surprisingly high inflation, and may soon draw in a lot of money off the sidelines."
Still, investors continue to keep an eye on developments in the Ukraine war, which is keeping oil prices elevated though they remain stuck just below $120 a barrel.
- Key figures around 0230 GMT -
Tokyo - Nikkei 225: UP 2.7 percent at 27,947.26 (break)
Hong Kong - Hang Seng Index: UP 1.7 percent at 22,265.81
Shanghai - Composite: UP 0.3 percent at 3,269.76
Brent North Sea crude: UP 0.9 percent at $116.57 per barrel
West Texas Intermediate: DOWN 0.8 percent at $110.15 per barrel
Dollar/yen: UP at 121.11 yen from 120.82 yen late Tuesday
Euro/dollar: DOWN at $1.1028 from $1.1033
Pound/dollar: UP at $1.3287 from $1.3260
Euro/pound: DOWN at 83.00 pence from 83.16 pence
New York - DOW: UP 0.7 percent at 34,807.46 (close)
London - FTSE 100: UP 0.5 percent at 7,476.72 (close)
O.Karlsson--AMWN