Associated Press


Stocks shoot higher in Hong Kong, Shanghai; Japanese markets closed for holiday

The skyline of Auckland, New Zealand. Inflation in New Zealand hit a 32-year high of 7.3% in the April-June quarter.

Bloomberg News

Referenced Symbols

BANGKOK — Shares were higher in Asia on Monday after Wall Street capped a week of losses with a broad rally for stocks Friday.

Hong Kong’s Hang Seng index HSI, +2.69% surged 2.2%, while the Shanghai Composite index SHCOMP, +0.82% gained 1.2%. In Seoul, the Kospi 180721, +0.33% jumped 1.7%, while Australia’s S&P/ASX 200 XJO, +0.66% added 0.8%.

New Zealand shares NZ50GR, +0.68% edged higher even after the government reported that inflation hit a 32-year high of 7.3% in the April-June quarter. It was 6.9% in the previous quarter.

On Sunday, the New Zealand government announced it would extend until January a program to cut gas taxes and public transport costs.

“We recognize this is a tough time for New Zealanders and the rise in the cost of living is making it hard for many,” said Finance Minister Grant Robertson.

Benchmark indexes in Singapore STI, +0.91% and Taiwan Y9999, +1.20% gained, while stocks declined in Indonesia JAKIDX, +0.15% .

Markets in Japan were closed for a holiday. U.S. futures YM00, +1.20% ES00, +1.52% edged higher while oil prices CL.1, +3.06% declined by less than $1.

Solid earnings from big companies and an encouraging report on consumer sentiment helped lift shares on Friday, but Wall Street benchmarks still ended the week lower.

A July survey from the University of Michigan showed that inflation expectations held steady or improved, along with general consumer sentiment. That was welcome news after reports that showed  consumer prices  remained extremely hot in June, along with  wholesale prices  for businesses.

The report also bodes well for investors looking for signs that the Federal Reserve might eventually ease off its  aggressive policy to fight inflation .

The S&P 500 SPX, +1.53% rose 1.9% to 3,863.16. snapping a five-day losing streak.

The Dow Jones Industrial Average DJIA, +1.19% rose 2.1% to 31,288.26 and the Nasdaq COMP, +2.11% gained 1.8% to 11,452.42.

Inflation and its impact  on businesses and consumers remain a key focus for Wall Street. The Federal Reserve has been raising interest rates in an effort to curtail rising inflation. The Fed has already raised rates three times this year.

In other trading, U.S. benchmark crude oil CLQ22 lost 81 cents to $96.78 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude BRNU22 , the standard for international trading, gave up 40 cents to $100.76 per barrel.

The U.S. dollar USDJPY, -1.06% slipped to 138.12 Japanese yen from 138.98 yen.