Asian stocks rose after another round of records on Wall Street

Asian stocks rose on Thursday after US stocks rose to record highs on hope Inflation is trending Back in the right direction.

The optimism came from A Report shows US consumers They had to pay prices for gasoline, car insurance and everything else in April that were 3.4% higher overall than a year earlier. Although this hurts, it is not as bad as the 3.5% inflation rate in March.

The slowdown was a relief after CPI reports earlier this year were worse than expected. Wednesday’s report was based on expectations that the Federal Reserve may cut its key interest rate this year, a top concern for most investors.

In Asian trading, the Nikkei 225 index in Tokyo rose 0.8% to 38,676.83 points even after the government announced that… Japanese economy contraction At an annual rate of 2% in the January-March quarter.

Hong Kong’s Hang Seng Index rose 1.6% to 19,369.06 points, while the Shanghai Composite Index rose 0.5% to 3,134.97 points.

In Australia, the S&P/ASX 200 advanced 1.6% to 7,874.70 while South Korea’s Kospi rose 0.8% to 2,751.32.

Taiwan’s Taiex rose 0.7% and India’s Sensex rose 0.5%.

On Wednesday, the S&P 500 index jumped 1.2% to exceed the previous high recorded a month and a half ago, closing at 5,308.15. The Dow Jones Industrial Average added 0.9% to 39,908.00, and the Nasdaq jumped 1.4% to 16,742.39, adding to the record it set the day before.

Stocks that tend to benefit most from lower interest rates helped lead the market. Homebuilder stocks rose on hopes that Fed cuts will ease mortgage interest rates, with shares of Lennar, DR Horton and PulteGroup each rising more than 5%. Big Tech companies and other high-growth stocks also benefited from the wave of expectations for lower interest rates, with Nvidia’s 3.6% gain the strongest force pushing the S&P 500 higher.

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Real estate stocks in the Standard & Poor’s 500 index rose 1.7%, while electric and other utility stocks rose 1.4%. The dividends they pay look better to investors when bonds pay less interest.

On Wall Street, Petco Health + Wellness helped lead the market after rising 27.9%. It has appointed Glenn Murphy, CEO of investment firm FIS Holdings, as its CEO.

On the losing end were GameStop and AMC Entertainment, where momentum then reversed Jaw starts in a week. GameStop stock is down 18.9%, though it’s still up 126.5% for the week so far.

AMC Entertainment stock fell 20% after it said it would issue approximately 23.3 million shares of its stock to pay off $163.9 million in debt.

A separate report showed Wednesday No growth in spending At US retailers in April of March. Economists had expected growth of 0.4%.

A slowdown in retail sales can be seen as a positive for markets, as it can reduce upward pressure on inflation. But weak consumer spending in the United States could erode one of the fundamental pillars protecting the economy from recession. The pressure has grown Especially high for low-income families.

In the bond market, the yield on the 10-year Treasury note fell to 4.34% from 4.45% late Tuesday. The two-year yield, which moves closely with expectations for Fed action, fell to 4.72% from 4.82%.

Traders now expect a roughly 95% chance that the Fed will cut its key interest rate at least once this year, according to data from CME Group. This is up from just under 90% the day before.

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In other trading early Thursday, the price of U.S. crude oil rose 42 cents to $79.05 a barrel in electronic trading on the New York Mercantile Exchange. It rose 61 cents on Wednesday.

Brent crude, the international standard, rose 39 cents to $83.14 a barrel.

The US dollar fell to 154.03 Japanese yen from 154.88 yen. The euro rose to $1.0888 from $1.0885.

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AP Business Writers Matt Ott and Stan Choi contributed.

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