Asian shares advance after weaker US price data push Wall Street higher, and a rate hike in Japan
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Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.Asian shares were moderately higher and U.S. futures were mixed after the Bank of Japan raised its key policy rate Friday to its highest level in 30 years.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The 0.25 percentage point increase by the BOJ was widely expected. It took the benchmark rate to 0.75%, which is still low compared with other major economies.There was scant immediate reaction in the markets to a decision that could reverberate through currency and cryptocurrency markets. Regional shares advanced after stocks on Wall Street rose Thursday following an encouraging report on inflation that could help the Federal Reserve keep cutting interest rates next year.The future for the S&P 500 was barely changed, while that for the Dow Jones Industrial Average slipped 0.2%.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.In Tokyo, the Nikkei 225 gained 1.2% to 49,568.66. Financial industry companies that may see profits climb due to higher interest rates led the advance.Hong Kong’s Hang Seng rose 0.4% to 25,610.50, while the Shanghai Composite index added 0.5% to 3,895.75.In Seoul, the Kospi climbed 0.5% to 8,628.70.Taiwan’s index gained 0.9%, while the Sensex in India dipped 0.2%.On Thursday, European indexes gained after the Bank of England cut its key interest rate and the European Central Bank kept its rate steady.The S&P 500 climbed 0.8% to 6,774.76, and broke a four-day losing streak. The Dow added 0.1% to 47,951.85, and strength for tech stocks sent the Nasdaq composite up a market-leading 1.4%, to 23,006.36.Some relief came from a report showing that inflation was lower last month than economists expected. That could soothe nerves at the Fed, which is responsible for keeping inflation low and for keeping the job market strong.Inflation is still higher than anyone would like, at 2.7% last month, but if it creeps closer to the Fed’s target of 2%, Fed officials could feel more free to cut interest rates to help a slowing job market. Wall Street loves lower rates because they can boost the economy and prices for investments, even if they may also worsen inflation.Thursday’s inflation update may not move the needle much at the Fed given how noisy economic reports have been following the U.S. government’s shutdown. Next month’s update on inflation could provide a better gauge of what’s actually happening.Also helping to drive gains was Micron Technology, a maker of memory and storage for computers, which rallied 10.2% after reporting better profit and revenue for the latest quarter than analysts expected.Billions of dollars are flowing into artificial-intelligencetechnology, which helped superstar stocks like Nvidia lead the market for years.But questions are rising about whether those stock prices shot too high and whether customers will get a good-enough return on their AI investments through bigger profits and productivity. Worries are also weighing on companies that are borrowing lots of money amid the AI frenzy.Oracle added 0.9% and Broadcom rose 1.1%. They have been at the center of such concerns recently. Nvidia, the chip company that’s become Wall Street’s most influential because of its immense size, gained 1.8%.Another winner was Trump Media & Technology Group, which jumped 41.9% to trim some of its steep loss for the year so far, 69.3% coming into the day. The company, which began with President Donald Trump’s Truth Social platform and then moved into cryptocurrencies and various other lines of business, is now moving into nuclear power.It’s merging with TAE Technologies in an all-stock deal, and each company will own roughly half of the combined business.In other dealings early Friday, U.S. benchmark crude oil lost 16 cents to $55.84 per barrel. Brent crude, the international standard, shed 21 cents to $59.61 per barrel.The dollar rose to 156.08 Japanese yen from 155.53 yen. The euro slipped to $1.1719 from $1.1723.The price of bitcoin rose to about $86,900.___AP Business Writers Matt Ott and Stan Choe contributed.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.