Asian Markets Climb Amid US Inflation Worries

Manila, Aug 15 (AP) Asian markets mostly saw gains despite a decline in Wall Street stocks, triggered by a poor inflation report. Prices at the US wholesale level in the previous month exceeded economist expectations, heightening inflation concerns. US futures, however, improved, while oil prices experienced a decline.

In China, economic pressures are apparent considering tariffs imposed by the US in July. The nation also encountered further decreases in property investments. Retail sales saw a 3.7% increase year-on-year, falling from June's 4.8% growth. Meanwhile, investments in factory equipment and fixed assets rose by a modest 1.6%, contrasting with the 2.8% growth witnessed from January to June.

Manufacturers continue to face tariff-related uncertainties, despite President Donald Trump's decision to extend the halt on tariff hikes for another 90 days after an initial pause that began in May.

The Shanghai Composite index managed a 0.5% increase to 3,683.58, whereas Hong Kong's Hang Seng index dropped 1.2% to 25,216.45. "Chinese economic activity slowed across the board in July," ING Economics noted, highlighting declines in retail sales, fixed asset investment, and industry value-added growth. After experiencing strong growth earlier, recent months indicate a need for more policy support.

Japan's Nikkei 225 recorded a 1.2% rise to 43,152.55 following reports of the country’s economic growth at a 1% annual pace in the April-June quarter, surpassing analyst expectations.

South Korea's Kospi saw a marginal increase of less than 0.1%, reaching 3,225.66, while Australia’s S&P/ASX 200 rose 0.4% to 8,909.20. Taiwan's TAIEX was up by 0.3%.

Focus later on Friday may shift to updates on US retail sales and a scheduled meeting between President Donald Trump and Russian President Vladimir Putin.

On Thursday, despite most stocks within the S&P 500 declining, the index saw a slight increase of less than 0.1%, marking a new all-time high. Conversely, the Dow Jones Industrial Average saw a slight decrease of 11 points, and the Nasdaq composite fell by less than 0.1% from its prior record.

Inflation data reveals a 3.3% jump last month at the US wholesale level from the previous year, significantly higher than the forecasted 2.5%. This upsurge suggests potential inflation pressure for US consumers. Consequently, traders are reconsidering their assumption that the Federal Reserve will lower interest rates in September. While lower rates could stimulate the economy by reducing borrowing costs, they might also exacerbate inflation.

Higher interest rates pose challenges, particularly for smaller companies needing loans for expansion. Consequently, the Russell 2000 index of smaller US stocks saw a significant drop of 1.2%.

This disappointing data followed earlier positive news on consumer prices. Thursday also brought promising news about the labor market, as fewer US workers applied for unemployment benefits, indicating a healthy job market despite fewer available openings.

A strong job market, however, might reduce the Federal Reserve's justification for cutting rates. Big Tech stocks like Amazon contributed to masking broader Wall Street losses. Amazon’s shares rose by 2.9%, bolstered by its recent introduction of same-day delivery for fresh groceries in over 1,000 locations.

Due to Amazon's sizeable market value of $2.45 trillion, fluctuations in its stock significantly impact the S&P 500.

In early Friday trading, US benchmark crude fell by 16 cents to $63.80 per barrel, while Brent crude, the international benchmark, decreased by 13 cents to $66.71 per barrel. The dollar slightly decreased to 147.14 Japanese yen from 147.20 yen, and the euro increased to $1.1665 from $1.1654. (AP) SCY SCY

(Only the headline of this report may have been reworked by Editorji; the rest of the content is auto-generated from a syndicated feed.)