Asian stocks were mostly up on Thursday, tracking an overnight rally on Wall Street as investors looked for bargains, including shares in technology companies.
Indices rose in morning trading in Tokyo, Seoul and Sydney. Markets in Hong Kong were closed due to the holiday.
The Shanghai Composite SHCOMP index, -0.10%, was little changed, at 3,560.14, after the government reported a sharp rise in producer price inflation, which rose to a record 10.7% a year earlier in September from 9.5% in August.
Experts ตลาด Forex ปิดกี่โมง in the report said much of the increase was due to a sharp rise in coal prices, which did not seem to affect consumer prices even as parts of the country struggle with power shortages. Consumer price inflation fell to 0.7% from 0.8% in August.
Also on Thursday, the Monetary Authority of Singapore raised its benchmark interest rate, citing price pressures. The move, which allowed the Singapore dollar to strengthen slightly against the US dollar by widening the trading band from 0%, coincided with news that the city-state's economy grew at a 6.5% annualised rate in July-September.
Japan's benchmark Nikkei 225 NIK, 1.46% added 1.4% to 28,544.70 as its new Prime Minister Fumio Kishida prepared to dissolve parliament ahead of the October 31 general election.
South Korea's Kospi 180721, 1.50% jumped 1.1% to 2,975.65. Australia's S&P / ASX 200 XJO, 0.54% rose 0.5% to 7,311.70. Trading in Hong Kong was closed due to a holiday.
"Asian shares rose on Thursday after positive transmission from Wall Street, where the technology and growth sectors performed best," said ActivTrades' Anderson Alves.
The S&P 500 SPX, 0.30% rose 0.3% to 4,363.80 on Wednesday. The Dow DJIA, -0.00% ended unchanged, down 0.53 points to 34,377.81. The high-tech Nasdaq COMP, 0.73% added 0.7% to 14,571.64. Shares of small companies also rose. The Russell 2000 RUT index, 0.34% added 0.3% to 2241.97.
Most of the 11 sectors of the S&P 500 index rose, with technology and communications accounting for a large portion of the gains. Companies relying on consumer spending also helped lift the market. Financials and energy companies fell.
Investors got more information about the US Federal Reserve's next policy measures after the central bank released minutes of its policy makers' meeting last month.
"You're starting to understand how they're going to do it, and the market is really just desperate for some clarity," he said. "At least we're starting to see a game plan," said Jay Jay Kinahan, chief strategist at TD Ameritrade.
Fed officials agreed at their last meeting that if the economy continues to improve, they could start cutting back on monthly bond purchases as early as next month and end them by mid-2022.
Banks were among the most influential in the market. JPMorgan Chase JPM, -2.64% fell 2.6% after its latest earnings showed the bank struggled to boost earnings at near-zero interest rates. Falling bond yields will also hurt as lenders rely on higher yields to charge more profitable interest on loans. American Express AXP, -3.54% fell 3.5% and Capital One Financial fell 3.3%.
Delta Air Lines DAL, -5.76% fell 5.8%, the biggest drop in the S&P 500 after warning that rising fuel prices would challenge its ability to remain profitable. Higher labour costs are also forecast. United Airlines UAL, -3.60% fell 3.9% and American Airlines AAL, -3.35% fell 3.3%.
Investors took the latest inflation news calmly. Consumer prices rose 5.4% in September compared with a year earlier, the highest since 2008. This was slightly higher than economists had expected. Many businesses are facing supply chain disruptions and delays amid rising demand for goods and have warned that this will increase costs and worsen their financial performance.
"There is a lot of nervousness and concern about inflation right now," said Christine Hooper, chief global markets strategist at Invesco. "We're going to see a lot of volatility and leadership changes; it's just part of the transition period we're in."
Analysts are concerned that companies are raising prices to offset higher transportation and raw material costs, which could lead to a halt in consumer spending, a key driver of economic growth. The Labor Department's latest report showed that prices for new cars, food, petrol and restaurant meals jumped in September.
Investors will get more data on US consumer spending on Friday when the Commerce Department reports retail sales for September.
In energy trading, focus on US crude oil CL00, 0.91% up 64 cents to $81.08 a barrel in electronic trading on the New York Mercantile Exchange. It lost 20 cents to $80.44 on Wednesday. Brent BRN00 crude oil, 0.97%, International Standard, rose 64 cents to $83.82 a barrel.
In foreign exchange trading, the US dollar rose to 113.50 JPY USDJPY, 0.16% from 113.28 yen. Euro EURUSD, 0.18% worth $1.1595, up from $1.1593.