Asian Stocks Mostly Higher as Wall Street Rally Boosts Sentiment Despite Inflation Worries

Sure, here is the rewritten text: “Most Asian stocks were higher on Wednesday following a rally on Wall Street, with the Nasdaq composite index reaching a record high. A report on Tuesday indicated that wholesale prices in the United States remain stubbornly high, with the producer price index for April coming in at 0.5 percent, higher than expected. Concerns about rising inflation in 2024 have raised worries about the Federal Reserve’s ability to control inflation. However, investors were reassured by comments from Fed Chair Jerome Powell, who stated that the central bank is unlikely to raise its key interest rate to combat inflation. The US will release its monthly update on consumer prices later on Wednesday, with economists expecting the consumer price index to ease to 3.4 percent in April on a year-over-year basis. In Asian trading, Tokyo’s Nikkei 225 index climbed 0.1 percent to 38,385.73, and Australia’s S&P/ASX 200 advanced 0.4 percent to 7,753.70. In China, the Shanghai Composite index slipped 0.5 percent to 3,129.81 after the central bank kept a key lending rate unchanged on Wednesday, signaling Beijing’s focus on maintaining monetary stability. Elsewhere, Taiwan’s Taiex gained 0.8 percent, and in Bangkok, the SET lost 0.4 percent. Markets in South Korea and Hong Kong were closed for a holiday. On Tuesday, the S&P 500 index rose 0.5 percent to 5,246.68, and the Dow Jones Industrial Average rose 0.3 percent to 39,558.11. The Nasdaq composite jumped 0.8 percent to 16,511.18, driven by gains in the technology sector. Several “meme” stocks, including GameStop and AMC Entertainment, surged, reminiscent of the social-media driven frenzy of three years ago. GameStop jumped 60.1 percent and AMC rose 32 percent, although both stocks retraced much of their earlier gains. Bond yields edged lower, with the yield on the 10-year Treasury slipping to 1.43 percent on Wednesday from 1.49 percent late Monday. Traders are currently betting on one or two rate cuts this year, according to data from CME Group. Wall Street is still hoping the Fed can achieve a “soft landing,” with high interest rates cooling inflation without causing a recession. The economy remains strong, but consumer spending is expected to soften in April, reflecting signs of fatigue under the weight of stubborn inflation. In other trading, benchmark US crude added 55 cents to reach $78.57 a barrel, while Brent crude rose 51 cents to $82.89 a barrel. In currency trading, the US dollar slipped to 156.37 Japanese yen from 156.42 yen. The euro cost $1.0826, up from $1.0820.”