Stocks climb after Wall Street rallies, Singapore GDP

An employee works at the Tokyo Stock Exchange in Tokyo, Japan, January 13, 2022.

Toru Hanai | Bloomberg | Getty Images

Asia-Pacific stocks surged on Friday, taking the lead on Wall Street overnight as investors shrugged off a strong inflation report.

The Nikki 225 in Japan rose 3.25% to 27,090.76, while the Topix gained 2.35% to 1,898.19. The Japanese yen plunged to its lowest level against the US dollar since 1990 overnight before paring its losses, and is still trading at 147 levels.

The Hang Seng index in Hong Kong gained 2.55% and the Hang Seng Tech index gained 3.15%. In Mainland China, the Shanghai Composite rose 1.9% and the Shenzhen Component rose 2.8%.

In Australia, the S&P/ASX 200 gained 1.75% to 6,758.80. South Korea Kospi advanced 2.3% and the Kosdaq climbed 4.09%. MSCI’s broadest Asia-Pacific ex-Japan equity index rose 2.4%.

Singapore’s GDP grew by 4.4% in the third quarter and is expected to tighten monetary policy further.

In the United States, inflation data showed consumer prices rose more than expected in September, with the CPI rising 0.4% from August and 8.2% from August. September of last year. Core inflation accelerated further in September.

Stocks had a volatile session but eventually rebounded to close higher, with every major index gaining more than 2%. The Dow Jones Industrial Average climbed 1,500 points between its lows and its high on Thursday in the United States

“Equity investors have apparently decided that stronger US inflation [report] today still does not quash expectations of a sharp price decline to come,” Rodrigo Catril, currency strategist at National Australia Bank, wrote in a note on Friday. He added that the rally could have been the result of short hedging.

– CNBC’s Jeff Cox, Carmen Reinicke and Alex Harring contributed to this report.