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Asian stocks surge after oil falls, easing inflation fears – Press Telegram

By JOE McDONALD

BEIJING (AP) – Japan’s stock benchmark shot up 4% and other Asian markets rose on Thursday after oil prices fell, easing fears of inflation accelerating.

Wall Street’s S&P 500 index rose 2.6% for its biggest daily gain in 12 years, as prices fluctuate sharply amid uncertainty over the impact of Russia’s war on Ukraine.

Markets rebounded after the price of U.S. crude fell 12%, easing a surge caused by fears that the war could disrupt Russian supplies. Brent crude, the price base for international oil trade, fell 13.2% in its biggest daily decline in almost two years.

Economists said the changes were influenced by changes in futures contracts and other market factors, not by the evolution of the war. They warned that markets will remain volatile as Russian and Ukrainian diplomats prepare to meet for negotiations.

“Markets seem to cling to a couple of slightly less sad tracks as an excuse to recover,” ING economists said in a report. “The basis for that optimism – it’s actually pretty scarce.”

Tokyo’s Nikkei 225 rose to 25,697.20 and Shanghai’s composite index gained 1.6% to 3,307.68. Hang Seng in Hong Kong rose 1.7% to 20,978.26.

Kospi in Seoul jumped 2.1% to 2,678.11 as negotiations resumed after a day off for South Korea’s presidential election.

Sydney’s S & P-ASX 200 rose 1.4% to 7,150.50. Markets in New Zealand and Southeast Asia have also advanced.

Oil prices rebounded but only rose a few cents a barrel after falling more than $ 15 on Wednesday.

The U.S. benchmark crude rose 36 cents to $ 111.50 a barrel in e-commerce on the New York Stock Exchange. The contract fell from $ 15 to $ 108.70 on Wednesday. Brent advanced 26 cents to $ 116.12 a barrel in London. He lost $ 16.84 in the previous session to $ 111.14.

On Wall Street, the S&P 500 rose to 4,277.88. The Dow Jones Industrial Average gained 2% to 33,286.25 and the Nasdaq compound gained 3.6% to 13,255.55.

On Wall Street, earnings were broad, with nearly 85% of the S&P 500 shares rising, led by technology companies. Some of the strongest movements came from airlines, travel companies and other stocks that recovered from sharp falls due to concerns about fuel costs and the economy.

Among the few declines on Wednesday were oil-related companies. Halliburton has fallen 5.2%, although it is still 52% by 2022.

Investors are watching the war because Russia is the world’s second largest exporter of oil after Saudi Arabia and the third largest supplier of nickel used in the manufacture of electric car batteries and stainless steel. Russia and Ukraine are major exporters of wheat.

The White House has banned imports of Russian crude oil to punish the Kremlin.

European stocks rose even more on Wednesday than the US market. The German DAX rose 7.9% and the French CAC 40 by 7.1%.

European economies are more dependent on Russian oil and gas supplies and face a greater potential impact of the war. This could lead European governments to use more economic stimulus, which raises stock prices.

Prior to Russia’s invasion of Ukraine on February 24, investors were already worried about plans by the Federal Reserve and other central banks to try to cool inflation by removing ultra-low interest rates and other incentives.

The U.S. Department of Labor reported on Wednesday that companies recorded an almost record level of open jobs, 11.3 million, in January, a trend that helped raise workers’ wages and added to inflationary pressures in the American economy.

Investors expect Fed policy makers to vote at a meeting next week to raise their short-term benchmark rate by a quarter of a percentage point. It would be the first such increase since 2018.

In foreign exchange markets, the dollar rose to 116.13 yen from 115.85 yen on Wednesday. The euro fell to $ 1.1049 from $ 1.1077.

Asian stocks surge after oil falls, easing inflation fears – Press Telegram Source link Asian stocks surge after oil falls, easing inflation fears – Press Telegram

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