BANGKOK—Shares rose in early European trading after closing mostly lower in Asia ahead of the release of consumer price data in the U.S.
Benchmarks advanced in Paris, London, Tokyo, and Sydney but fell in Hong Kong, Shanghai, and Seoul. Oil prices rose while U.S. futures edged lower.
Friday will bring the core U.S. personal consumption expenditure, or PCE price index, which measures changes in prices of consumer goods and services, excluding food and energy. Forecasts are for moderate increases as steep inflation abates in response to easing supply chain issues and higher interest rates.
Germany’s DAX edged 0.1 percent higher to 15,488.24 and the CAC 40 in Paris added 0.2 percent to 7,331.57. Britain’s FTSE 100 gained 0.3 percent to 7,928.14. The future for the Dow Jones Industrial Average slipped 0.2 percent while that for the S&P 500 was down 0.3 percent.
Japan reported its core consumer price index, excluding volatile fresh foods, rose the most in 41 years in January. But the nominee to head its central bank, economist Kazuo Ueda, told lawmakers he favors keeping Japan’s benchmark interest rate near zero to ensure stable growth.
Ueda is expected to succeed BOJ Gov. Haruhiko Kuroda when he steps down in April after two 5-year terms marked by unprecedented easing. The change of leadership has prompted speculation about a possible change in the ultra-lax monetary stance, though Ueda sought to dispel such expectations.
Wages in Japan have failed to keep pace with price increases, and worries over a potential global recession have left the BOJ wary of altering course.
“Time is needed before the effects of monetary policy kick in,” Ueda told Parliament, noting the price rises are peaking.
Tokyo’s Nikkei 225 index added 1.3 percent to 27,453.48 and the S&P/ASX 200 in Australia gained 0.3 percent to 7,307.00.
In Hong Kong, the Hang Seng index lost 1.7 percent to 20,010.04 while the Shanghai Composite index gave up 0.6 percent to 3,267.16. South Korea’s Kospi lost 0.6 percent to 2,423.61.
India’s Sensex fell 0.4 percent and shares also fell in Taiwan and Bangkok.
On Thursday, the S&P 500 rose 0.5 percent for its first gain in five days, while the Dow industrials advanced 0.3 percent. The Nasdaq composite surged 0.7 percent.
Tech and high-growth stocks have struggled recently because of worries about rising interest rates. They’re seen as some of the most vulnerable as the Federal Reserve jacks rates higher to try to curb inflation.
High rates hurt prices for investments, particularly those seen as the riskiest, the most expensive, or those whose big growth is in the future. They also raise the risk of a recession because they slow the economy.
A lengthening list of reports have shown the U.S. economy is in stronger shape than expected, raising hopes a recession can be avoided. But that’s also forced Wall Street to raise its forecasts for how high the Fed will take interest rates and how long it will keep them there.
Fewer workers applied for unemployment benefits last week than expected, the latest indication the job market remains resilient. A separate report said economic growth was likely a touch weaker in the last three months of 2022 than earlier estimated. But the U.S. economy still grew at a 2.7 percent annual rate.
Wall Street’s heightened expectations for rates and the Fed have been most evident in the bond market, where Treasury yields have shot higher this month. They eased a bit on Thursday, taking some of the pressure off stocks.
The yield on the 10-year Treasury, which helps set rates for mortgages and other important loans, dipped to 3.86 percent early Friday from 3.93 percent late Wednesday. Earlier this week, it topped 3.95 percent, approaching its highest level since November.
In other trading Friday, U.S. benchmark crude oil gained 73 cents to $76.12 per barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the pricing basis for international trading, picked up 75 cents to $82.70 per barrel.
The U.S. dollar rose to 135.15 Japanese yen from 134.70 yen. The euro fell to $1.0589 from $1.0596.
