STOCK markets mostly rose Monday as investors pared their bets on an interest rate hike by the Federal Reserve that curtail growth, awaiting inflation data this week for more clues to the outlook for the world’s biggest economy.
Oil prices gained close to two per cent as the United States and Iran remained deadlocked over a deal to reopen the Strait of Hormuz to Gulf tanker and cargo traffic. In Asia, equities were boosted by technology shares following a volatile run in recent weeks, with Japanese and Korean chipmakers leading the charge.
Tokyo climbed more than two per cent thanks to advances for Tokyo Electron and Advantest, and Seoul, Hong Kong, Shanghai and Mumbai also closed higher.
European stock markets were more subdued, with Frankfurt edging up, Paris flat and London dipping around midday. Sentiment was lifted after US data on Friday showed that 23,000 jobs were lost last month, confounding widespread expectations for growth and suggesting that economy was slowing.
But traders welcomed the prospect that the Federal Reserve would hold off on raising borrowing costs to contain stubbornly high inflation, at least for the time being. “People who lose their jobs and those who see their wages grow more slowly will be tempted to spend less,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
That would “tame inflationary pressures and help the Federal Reserve keep rates unchanged for longer”, she added. Focus now turns to US consumer inflation data due Wednesday, followed by producer prices later in the week.
AFP
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