An employee works at the Tokyo Stock Exchange in Tokyo, Japan, on Jan. 13, 2022.
Toru Hanai | Bloomberg | Getty Images
Shares in the Asia-Pacific jumped on Friday, taking the lead from Wall Street overnight as investors shook off a strong inflation report.
The Nikkei 225 in Japan was 3.46% higher, while the Topix gained 2.69%. Japan’s yen plunged to its lowest levels against the U.S. dollar since 1990 overnight before paring losses, and is still trading at 147-levels.
The Hang Seng index in Hong Kong gained 3.37%, with the Hang Seng Tech index gaining 3.94%. In mainland China, the Shanghai Composite was up 1.57% and the Shenzhen Component rose 2.12%.
In Australia, the S&P/ASX 200 gained 1.91%. South Korea’s Kospi advanced 2.53% and the Kosdaq climbed 4.28%. MSCI’s broadest index of Asia-Pacific shares outside Japan was 2.69% higher.
Singapore’s GDP grew 4.4% in the third quarter and is expected to further tighten its monetary policy.
In the U.S., inflation data showed consumer prices increased more than expected in September, with CPI rising 0.4% from August, and 8.2% from September last year. Core inflation accelerated even faster in September.
Stocks had a volatile session but ultimately rebounded to close higher, with each major index gaining more than 2%. The Dow Jones Industrial Average soared 1,500 points from its lows to the highest level on Thursday in the U.S.
“Equity investors seemingly decided that a stronger U.S. inflation [report] today still doesn’t negate expectations of a sharp declines in prices ahead,” Rodrigo Catril, currency strategist at National Australia Bank, wrote in a note Friday. He added that the rally could have been a result of short-covering.
— CNBC’s Jeff Cox, Carmen Reinicke and Alex Harring contributed to this report.