Asian stock indices were steadily advancing on Friday, following similar dynamics on the US and European stock markets a day earlier.
Investor sentiment was positively affected by U.S. inflation data.
U.S. consumer prices (CPI) rose 7.7% in October compared to the same month a year ago, according to the Labor Department. This is the lowest figure since January this year. Thus, inflation slowed from 8.2% in September and was below the 8% average forecast by analysts polled by Trading Economics.
The Federal Reserve is keeping a close eye on data on the pace of consumer price growth. A better-than-expected indicator may encourage the Fed to slow the pace of interest rate hikes, experts believe.
Japan’s Nikkei 225 index was up 2.9 percent by 8:19 a.m. ksd, reaching its highest level in eight weeks.
The most significant rise among the components of the indicator is shown by shares of M3 Inc. providing medical services – by 10.7%. Fujifilm (+10.1%), Shiseido (+9.5%) and Advantest Corp. (+9.1%) were also among the growth leaders.
Mazda Motor’s share price is up 7.8%. The automaker increased net income 3.6 times in July-September and revenue 9.8%.
In addition, SoftBank Group (+1.5%), Sony Group (+4.9%), Fast Retailing (+2.1%), Toyota Motor (+2%) and Nintendo (+0.5%) were up.
Producer prices in Japan rose 0.6% in October compared to the previous month and 9.1% compared to the same month last year. Analysts on average had anticipated a 0.6% rise in the former and an 8.8% rise in the latter, Trading Economics reported. According to the revised data, prices rose 1 percent month-on-month and 10.2 percent year-over-year in September.
China’s Shanghai Composite had gained 1.6% by 7:24 a.m. Ksk, while Hong Kong’s Hang Seng soared 6% to a four-week high.
Shares of developers Longfor Group Holdings Ltd. (+26.5%) and Country Garden Holdings Co. (+25.9%) were among the leaders in the rally at the Hong Kong Stock Exchange. The day before the National Association of Financial Market Institutional Investors approved the registration of Longfor’s 20 billion yuan ($2.8 billion) bond issue.
The price of NIO securities jumped 13.2%. The electric car maker increased its net loss 4.5 times in the third quarter, but gave a strong sales forecast for the current period.
Tencent Holdings Ltd. was up 7.7%, retailers Alibaba Group and JD.com Inc. (SPB: JD) by 7.2% and 11%, carmaker BYD by 5.7%, telecom China Mobile by 1.4% and consumer electronics maker Xiaomi by 3.3%.
South Korea’s Kospi index had added 3.1% by 7:20 a.m. Ksk.
Stocks on Samsung Electronics Co., one of the world’s biggest chip and electronics makers, rose 3.8 percent, while carmaker Hyundai Motor gained 1.2 percent.
Australia’s S&P/ASX 200 index rose 2.8% to a five-month high.
Shares of all four major banks in the country rose: the Commonwealth Bank – by 1.7%, ANZ Bank – 1.5%, Westpac Banking – 2% and National Australia Bank – 1.1%. Share prices of the world’s largest mining companies BHP and Rio Tinto rose by 3.8% and 4.4%, respectively.
