Asian shares extend gains after more Wall Street records

Asian shares logged strong gains on Wednesday after another round of record highs for major indexes on Wall Street.

Benchmarks rose in Tokyo, Hong Kong and Seoul. Shanghai edged lower after China reported that its consumer price index slipped 0.5% in November compared with a year earlier.

Economists said the country’s first slip into deflation since 2009 was no cause for alarm. The overall measure was dragged down by falling food prices due to improvements in supplies of pork, which have been disrupted while authorities fight outbreaks of African swine fever, while other prices gained as economic activity recovers from the coronavirus pandemic.

“Looking through the recent volatility in food and energy prices, the inflation data are less downbeat than meets the eye," Capital Economics said in a commentary. It noted that core consumer price inflation, excluding volatile food and energy prices, was steady at 0.5% from a year earlier. Strong demand was also driving a recovery manufactured goods' prices, it said.

Japan released data showing strong machinery orders in October, adding to signs its economy is on the mend.

Tokyo's Nikkei 225 index gained 1.1% to 26,769.31, while the Hang Seng in Hong Kong added 0.9% to 26,539.55. In South Korea, the Kospi jumped 1.5% to 2,738.67. Australia's S&P/ASX 200 advanced 0.6% to 6728.50, while the Shanghai Composite index slipped 0.3% to 3,399.64.

India's Sensex climbed 0.6% to 45,899.77. Shares were also higher in Southeast Asia.

Overnight, the S&P 500 rose 0.3%. The tech-heavy Nasdaq also hit a record high. Investors were encouraged by upbeat news on coronavirus vaccines and reports that lawmakers and the White House are making progress toward fresh stimulus for the U.S. economy.

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