Hong Kong’s Hang Seng Index gained 1.56%, Japan’s Nikkei 225 climbed 1.72%, South Korea’s KOSPI added 1.24%, and Australia’s ASX 200 advanced 0.50%
Asia Pacific stocks were up on Wednesday morning, as investors digested the latest Chinese inflation data. Their U.S. equivalents also rose after Federal Reserve Chair Jerome Powell reiterated that the central bank would tackle inflation.
China’s Shanghai Composite was up 0.22% by 2:01 AM GMT and the Shenzhen Component added 0.77%. Data released earlier in the day showed that the consumer price index (CPI) contracted 0.3% month-on-month while growing 1.5% year-on-year in December. The producer price index (PPI) grew 10.3% year-on-year.
U.S.-listed Chinese stocks were up, with the Nasdaq Golden Dragon China Index jumping as much as 4.7%. But Goldman Sachs Group Inc. cut its forecast for China’s growth in 2022 as the country deals with its latest COVID-19 outbreaks involving the omicron variant.
Hong Kong’s Hang Seng Index gained 1.56%. Japan’s Nikkei 225 climbed 1.72% and South Korea’s KOSPI added 1.24%. In Australia, the ASX 200 advanced 0.50%.
In his Senate Banking Committee hearing for a second term as Fed chairman, Powell said that the central bank would act if needed to contain high inflation, adding that the Fed will probably start asset tapering in 2022.
It has been a rocky start to 2022 as investors brace for interest rate hikes to curb soaring inflation.
The market is grappling with a broad-based rotation and the potential for a hastened pace of rate hikes, which is leading to volatility, UBS Private Wealth Management managing director Greg Marcus said in a note.
He said: Regardless of the volatility seen in markets so far this year, corporate fundamentals are strong, and we are expecting double-digit earnings growth this year, which should bode well for stock prices in 2022.
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