BEIJING (AP) — Asian stock markets rose Monday after Wall Street hit a new high and China promised aid to shore up economic growth.
Shanghai, Tokyo, Hong and Sydney advanced ahead of a Federal Reserve policy meeting this week at which higher U.S. inflation might influence a decision on when to start rolling back stimulus that is boosting stock markets.
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Wall Street’s benchmark S&P 500 index
SPX,
+0.95%
closed Friday up 3.8% for the week in a rally led by tech companies.
Also Friday, Chinese leaders promised tax cuts and other aid to entrepreneurs at an annual planning meeting that emphasized maintaining stability after economic growth fell to an unexpectedly low 4.9% over a year earlier in the latest quarter.
The ruling Communist Party wants to “avert a hard landing” ahead of leadership changes at a meeting late next year, said Vishnu Varathan of Mizuho Bank in a report.
The Shanghai Composite Index
SHCOMP,
+0.43%
rose 0.8% to 3,695.30 and the Hang Seng in Hong Kong
HSI,
+0.36%
gained 0.5% to 24,201.43.
The Nikkei 225 in Tokyo
NIK,
+0.71%
advanced 0.9% to 28,696.68 after the latest quarterly Tankan survey showed stronger improvement in business conditions for service industries than expected.
The Kospi in Seoul
180721,
-0.28%
added 0.5% to 3,025.19, and Sydney’s S&P-ASX 200
XJO,
+0.35%
was 0.6% higher at 7,396.10.
New Zealand and Southeast Asian markets also gained.
On Wall Street in last week’s final trading session, the S&P 500 gained 1% to 4,712.02. It is up 25.5% for the year. The Dow Jones Industrial Average
DJIA,
+0.60%
advanced 0.6% to 35,970.99. The Nasdaq Composite
COMP,
+0.73%
rose 0.7% to 15,630.60.
Government data showed U.S. consumer inflation rose to a 39-year high of 6.8% in November. But the impact on financial markets was limited because it was in line with expectations.
Rising inflation has prompted the Fed to speed up the pace at which it is trimming bond purchases that pump money into the financial system. The Fed previously planned to raise ultralow interest rates in late 2022, but investors now expect that to be moved up to midyear.
On Friday, more than 70% of the stocks in the S&P 500 rose. Software maker Oracle
ORCL,
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