Australia inflation hits highest in 32 years; Asia-Pacific markets rise

Shoppers walking around Pitt Street Mall on June 07, 2022 in Sydney, Australia.

Brendon Thorne | Getty Images News | Getty Images

Shares in the Asia-Pacific rose Wednesday as sentiment overnight improved over the Fed potentially turning less aggressive. Australia’s annual consumer price index reached the highest since December 1990.

In Australia, the S&P/ASX 200 rose 0.34% ahead of the report before trading almost flat. Tea australian dollar climbed to near $0.6400 as investors digest inflation data.

Tea Nikkei 225 in Japan rose 0.87% in early trade, and the Topix gained 0.79%. South Korea’s Kospi gained 0.2% and the Kosdaq was 0.3% lower. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked marginally higher.

India’s market is closed for a holiday. In corporate news, Standard Chartered, Pinganand SK Hynix are among the companies slated to report earnings Wednesday.

Overnight in the US, major indexes rose for a third straight session as bond yields slide. The Dow Jones Industrial Average closed 337.12 points higher, or about 1.1%, to end at 31,836.74. The S&P 500 advanced 1.6%, closing at 3,859.11. The Nasdaq Composite popped 2.2%, landing at 11,199.12.

“Markets rebounded overnight driven by better earnings reports and speculation that the monetary policy tightening cycle may be nearing its end,” analysts wrote in an ANZ Research note, adding that falling consumer confidence and house prices indicate that tightening policies may be starting to reduce demand .


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