Asian Shares Rally On Wall Street Rebound

Asian stocks posted strong gains on Friday after U.S. stocks staged a remarkable turnaround to close sharply higher overnight despite higher-than-expected inflation numbers.

China’s Shanghai Composite Index surged 1.8 percent to 3,071.99 after the release of mixed inflation data.

Chinese consumer price inflation accelerated at the fastest pace in more than two years in September on higher food prices, while producer price inflation eased further, official data showed.

Consumer price inflation accelerated to 2.8 percent in September from 2.5 percent in August.

Due to base effects and falling commodity prices, producer price inflation slowed sharply to 0.9 percent in September from 2.3 percent in the previous month.

Hong Kong’s Hang Seng Index jumped 1.2 percent to 16,587.69 but still lost about 5 percent during the week due to steep declines in major technology stocks earlier this week following new U.S. curbs on China’s chip industry.

Japanese markets soared following robust gains on Wall Street overnight. The Nikkei 225 Index spiked 3.3 percent to 27,090.76, while the broader Topix ended 2.4 percent higher at 1,898.19.

Finance Minister Shunichi Suzuki reiterated the government’s readiness to take “appropriate action” against excessive currency volatility as the yen touched a 32-year low versus the dollar.

Heavyweight SoftBank Group gained 3.3 percent and Uniqlo operator Fast Retailing surged 8.4 percent. Sony climbed 4.3 percent after inking a JV with Honda to produce premium electric vehicles in 2025.

Seoul stocks rallied even as the latest U.S. inflation data pointed to more hawkish moves by the Federal Reserve. The Kospi shot up 2.3 percent to 2,212.55, with big-cap share such as Samsung Electronics and Hyundai Motor pacing the gainers.

South Korea’s jobless rate rose in September from a record low set in August, while employment fell slightly, data showed earlier today.

Australian markets closed sharply higher, led by gains among financials and energy stocks. The benchmark S&P/ASX 200 Index gained 1.8 percent to settle at 6,758.80, while the broader All Ordinaries Index ended 1.7 percent higher at 6,948.60.

Gold miners underperformed as the precious metal headed for a weekly decline on fears of hefty U.S. interest rate hikes.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 Index rose 0.5 percent to 10,868.09 but fell more than 2 percent for the week.

U.S. stocks reversed course to post strong gains overnight even as the September inflation report showing core inflation at a 40-year high poured cold water on hopes of a Fed pivot.

Consumer prices rose 0.4 percent in September compared to August, while economists had expected a 0.2 percent increase.

The S&P 500 hit its lowest level since November 2020 before seeing a sharp turnaround to close 2.6 percent higher. The Dow spiked 2.8 percent and the tech-heavy Nasdaq Composite surged 2.2 percent.

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