Asian share prices advanced on Friday as a shock from a surprisingly strong U.S. inflation reading ebbed, with investors hopeful that the worst price hikes could be soon over.
Money markets have already priced in two rate hikes next year.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.46% higher.
· Japanese shares end higher as investors scoop up battered stocks
Japanese shares ended higher on Friday, underpinned by tech stocks, as investors bought into a domestic market that has lagged behind a global rally on concerns about the impact of rising costs on corporate earnings.
The Nikkei share average rose 1.13% to close at 29,609.97, extending gains for a second session, while the broader Topix advanced 1.31% to 2,040.60. Both indexes closed flat for the week.
· China blue-chips fall as property policy easing hopes fade
Chinese blue-chip stocks closed lower on Friday as shares of real-estate developers retreated from a buying frenzy in the previous session fanned by bets on policy easing in the property sector.
The blue-chip CSI300 index ended 0.2% lower at 4,888.37, while the Shanghai Composite Index rose 0.2% to 3,539.10 points.
For the week, the Shanghai Composite index added 1.4%, its biggest weekly gain in two months. The CSI300 index rose 1%, gaining the most in five weeks.
Bankers and analysts, however, said China will stand firm on policies to curb excess borrowing by property developers even as it makes financing tweaks to help home buyers and meet “reasonable” demand amid an industry liquidity crunch.
· European stocks inch higher; heading for positive week despite inflation worries
European stocks were mostly higher on Friday morning, continuing to search for direction as global investors assess recent high inflation prints and corporate earnings.
The pan-European Stoxx 600 added 0.2% in early trade, with household goods adding 1.7% while oil and gas slipped 0.4%.
Historic inflation surges in the U.S. and China have weighed on global markets so far this week, but European markets are still looking to eke out gains going into Friday’s trade.
A Reuters poll of economists on Thursday indicated that euro zone inflation expectations are also at risk of continuing to overshoot the European Central Bank’s 2% target in 2022. Euro zone inflation topped 4% last month but the ECB has broken from other major central banks by resisting calls for a tightening of monetary policy.
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