China CPI and PPI, Fed comments, World Bank forecasts
SINGAPORE — Markets in Asia-Pacific jumped on Wednesday, after U.S. markets rallied overnight as comments from the Fed chief appeared to reassure investors.
South Korea’s Kospi rose about 1%.
In Australia, the ASX 200 was higher by 0.86%. Gold miners gained in the morning. Kingsgate Consolidated soared nearly 10%, while Evolution Mining jumped 3.89%, and Newcrest was up 3.68%. Gold prices climbed 1% on Tuesday.
Economic numbers due out in Asia on Wednesday include China’s consumer and producer price index for December.
Stocks on Wall Street rallied for a second day after a rocky start to the year.
The tech-heavy Nasdaq Composite gained 1.41% to 15,153.45, building on an afternoon rally from the previous session that snapped a four-day losing streak. The S&P 500 rose 0.92% to 4,713.07, while the Dow Jones Industrial Average added 183.15 points, or 0.51%, to close at 36,252.02.
“Stocks rebounded, reversing the recent downward trend, as comments from Powell reassured investors that the Fed is prepared to tighten monetary policy to maintain price stability,” ANZ Research analysts Brian Martin and Daniel Hynes wrote in a note.
Fed Chair Jerome Powell said Tuesday that rate hikes and tighter policy will be needed to control inflation, but did not announce an accelerated change in policy from what the central bank had already signaled.
Concerns on global economic growth also surfaced as the World Bank Tuesday cut growth forecasts for the U.S., the Euro zone as well as China. It warned that high debt levels, rising income inequality and new coronavirus variants threatened the recovery in developing economies.
Oil prices continued to inch up after soaring around 3.8% on Tuesday. U.S. crude was up 0.26% to $81.43 per barrel.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 95.624, falling from levels above 95.9 earlier in the week.