Stock Market LIVE: Asian shares up; US Fed not actively mulling 75bps rate hike


Monetary tightening, China’s Covid lockdowns and Russia’s war in Ukraine have roiled a range of assets this year and left world shares near a bear market.

13 May 2022, 07:59:53 AM IST

Asian shares up; US Fed not actively mulling 75bps rate hike

Stocks and U.S. equity futures rose Friday amid a bout of calm in global markets after Federal Reserve Chair Jerome Powell again pushed back against speculation of more aggressive interest-rate hikes.

Japan, China and Hong Kong helped an Asian share gauge climb 1%. US and European contracts advanced after a volatile S&P 500 session saw the index rebound to close little changed.

Powell reaffirmed the Fed is likely to raise rates by a half point at each of its next two meetings and isn’t “actively considering” a 75 basis-point move.

But he left open the possibility of doing more if needed to get high inflation under control. Concerns that tightening monetary policy will spark an economic downturn continue to shadow markets and have tended to snuff out rebounds.

S&P 500 futures rose 0.7%, Nasdaq 100 futures added 0.9%, and Euro Stoxx 50 futures rose 0.8%.

Japan’s Topix index climbed 1.7%, Australia’s S&P/ASX 200 index rose 1.4%, South Korea’s Kospi index increased 1.6%, China’s Shanghai Composite index rose 0.5%, and Hong Kong’s Hang Seng index added 1.4%.

Overnight, US stocks ended a volatile session slightly lower, as investors juggled fears of nagging inflation with signs it could be peaking. The S&P 500 came within striking distance of confirming a bear market since falling from its all-time high reached in January.

The Dow Jones Industrial Average fell 103.81 points, or 0.33%, to 31,730.3, the S&P 500 lost 5.1 points, or 0.13%, to 3,930.08 and the Nasdaq Composite added 6.73 points, or 0.06%, to 11,370.96.

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