Asian shares mixed after US inflation jumps 5% in May
BANGKOK (AP) — Shares were mostly higher in Asia on Friday after the S&P 500 index notched another record high despite a surge in U.S. consumer prices in May.
Shanghai fell, Tokyo was nearly unchanged, while shares rose in Hong Kong, Seoul and Sydney. U.S. futures were marginally lower.
On Thursday, Wall Street logged gains while bond yields mostly fell despite the much-anticipated report showing consumer prices rose 5% in May, the biggest year-over-year increase since 2008 and more than economists had expected.
Investors also reacted positively to more data that showed continued improvement in the labor market.
The worry is that if signs of inflation persist, central banks may move to withdraw stimulus from the economy to ease price pressures.
But investors are still buying into the Federal Reserve's stance that the current bout of inflation is transitory, said Jeffrey Halley of OANDA.
“Financial markets have long raised a selective use of facts to an art form," Halley said in a report. “Although the US inflation measures rose once again and slightly above forecast, the actual increases were less than those recorded in April."
Taking all factors into consideration, “that was all the street needed to return to its buy-everything happy place."
In Asia, where China-U.S. tensions are among many factors weighing on sentiment, the mood was less ebullient.
Tokyo's Nikkei 225 index was unchanged, at 28,948.73, while the Hang Seng in Hong Kong rose 0.4% to 28,847.02. The Kospi in Seoul gained 0.8% to 3,249.32, while the Shanghai Composite index slipped 0.5% to 3,593.20.
India's Sensex gained 0.3%.
On Thursday, the S&P 500 gained 0.5% to 4,239.18, just beating its previous all-time high set on May 7th. The Dow Jones Industrial Average edged up 0.1% to 34,466.24. The...