Asian shares were mostly higher today after new data showed inflation in the US, while still at a 40-year high, was not as bad as some analysts had expected.

Benchmarks rose in Japan, South Korea, Hong Kong and Australia. US futures were also higher, while oil prices were little changed.

Shares fell in Shanghai after the Chinese government reported that exports rose nearly 16% in March 2022 from a year earlier while imports were flat.

The easing of a COVID-19 lockdown in Shanghai was another encouraging factor. Shanghai released 6,000 more people from the central facilities where they were under medical observation to guard against the coronavirus, the government said today, though the lockdown of most of China’s largest city was being maintained in its third week.

Japan’s benchmark Nikkei 225 jumped 1.9% to finish at 26,843.49. Australia’s S&P/AS 200 added 0.3% to 7,479.00. South Korea’s Kospi surged 1.9% to 2,716.60. Hong Kong’s Hang Seng gained 0.3% to 21,382.96, while the Shanghai Composite shed 0.6% to 3,194.92.

In Tokyo trading, shares of Shionogi dropped 11% after the Japanese pharmaceutical company reported that animal tests for its experimental oral drug to treat COVID-19 showed it may be a risk for fetal development. Japanese media reported the drug won’t be prescribed to pregnant people or those who may be pregnant.

Stocks ended slightly lower on Wall Street yesterday (Tuesday) after investors weighed the inflation data for March 2022, although overall it remained at its highest level in 40 years. Some analysts urged caution.

The S&P 500 fell 0.3% after having been up 1.3% earlier in the day. The pullback extends the benchmark index’s losing streak to a third day, reflecting investors’ worries about the potential economic collateral damage as the Federal Reserve tackles high inflation more aggressively.

The Dow Jones Industrial Average and the Nasdaq composite each fell 0.3% after shedding early gains.

The indexes initially rallied following the release of the report, which showed inflation last month was again at its highest level in generations, driven by soaring gasoline prices in particular. Still, the reading was relatively close to economists’ expectations.

The measure known as “core inflation,” which excludes highly volatile costs of food and fuel, moderated to its slowest month-on-month change since September.

In energy trading, benchmark US crude added 10 cents to $100.70 a barrel. It climbed 6.7% to settle at $100.60 yesterday (Tuesday), keeping the pressure on inflation. Brent crude, the international standard, rose 25 cents to $104.89.

Consumer prices rose 8.5% in March 2022 from a year earlier, accelerating from February’s 7.9% inflation rate and the highest since 1981.

In currency trading, the US dollar edged up to 126.03 Japanese yen from 125.37 yen, the euro cost $1.0835, up from $1.0827.

Source: Oman News Agency