Asian stock markets on the rise follow Wall Street



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Asian stock markets on the rise follow Wall Street

The MSCI index of Asia-Pacific shares, excluding Japanese shares, was up 0.6 percent around 7 p.m. Asian shares rose, as did Wall Street the day before, as investors hoped for an easing of inflationary pressures in the US, which could prompt the Fed to slow the pace of interest rate hikes.

The MSCI index of Asia-Pacific shares, excluding Japanese shares, was up 0.6 percent around 7 p.m. At the same time, on the Tokyo Stock Exchange, the Nikkei index strengthened by 0.2 percent, while share prices in Shanghai, Hong Kong, Australia and South Korea rose between 0.3 and 2.6 percent.

Asian investors were encouraged by Wall Street's rise in share prices on Monday for the fourth day in a row. The Dow Jones strengthened by 0.71 percent, while the S&P 500 rose by 1.06 percent and the Nasdaq index by 1.27 percent.

This is thanks to investors' hope that inflationary pressures in the US are easing, which could lead the US central bank to slow the pace of interest rate increases. On Tuesday, the US consumer price report will be released, which will show how much inflationary pressures eased in August, given that fuel prices fell that month.

Analysts polled by Reuters estimated that inflation slipped to 8.1 percent on an annual basis, from 8.5 percent a month earlier. “Consumer price growth is expected to slow, and investors hope that this will lead to a slowdown in the pace of Fed rate hikes after September.

Because of this, investors these days are more inclined to riskier investments," explains Robert Pavlik, portfolio manager at Dakota Wealth. So far, the leaders of the Fed are not letting up at all in their harsh rhetoric about suppressing inflation.

Central bank chairman Jerome Powell said last week that the Fed is "strongly committed" to curbing inflation and will continue to tighten monetary policy until it achieves that goal.