BEIJING—Global stock markets advanced Friday after a Federal Reserve official raised hopes the U.S. central bank might not step up its anti-inflation fight as much as feared.
London, Shanghai, Frankfurt, and Tokyo gained. Oil prices edged higher.
Wall Street rose Thursday for the first time in three days after the president of the Federal Reserve Bank of Atlanta, Raphael Bostic, expressed support for raising the Fed’s key lending rate less than many investors are forecasting. Bostic said the Fed might be able to suspend additional rate increases by mid-year, sooner than some expect.
Stocks advanced following those “dovish comments,” said Anderson Alves of ActivTrades in a report.
In early trading, the FTSE 100 in London rose 0.3 percent to 7,969.52. The DAX in Frankfurt advanced 0.9 percent to 15,463.70 and the CAC 40 in Paris gained 0.7 percent to 7,284.22.
On Wall Street, futures for the benchmark S&P 500 index and the Dow Jones Industrial Average were down 0.1 percent.
On Thursday, the S&P 500 rose 0.8 percent, rebounding from a loss early in the day, after Bostic expressed support for raising the Fed’s benchmark lending rate to a range of 5 percent to 5.25 percent.
That countered comments by other Fed officials who say rates might have to be raised more and stay elevated longer to extinguish stubborn inflation after job growth, consumer spending, and price rises were stronger than expected.
The Dow added 1 percent and the Nasdaq composite gained 0.7 percent.
In Asia, the Shanghai Composite Index rose 0.5 percent to 3,326.92 after a central bank authority said China’s vast real estate industry was recovering from a slump triggered by debt controls that led to a wave of defaults by developers, rattling global financial markets.
The Nikkei 225 in Tokyo gained 1.6 percent to 27,934.01 after Japan’s unemployment rate edged lower in January.
The Hang Seng in Hong Kong gained 1.2 percent to 20,555.46 and the Kospi in Seoul was 0.2 percent higher at 2,432.07.
Sydney’s S&P-ASX 200 added 0.4 percent to 7,282.20 and India’s Sensex rose 1.6 percent to 59,834.42. New Zealand, Bangkok, and Jakarta declined while Singapore advanced.
Data on Thursday showed fewer Americans applied for unemployment benefits last week despite interest rate hikes to cool business activity. That is positive for workers, but the Fed worries strong employment might fuel inflation.
Traders have raised forecasts of how high the Fed will raise rates and for how long.
Treasury yields, which respond to expectations of Fed policy, widened again Thursday.
The yield on the 10-year Treasury, or the difference between its market price and payout at maturity, widened to 4.06 percent from 4.00 percent late Wednesday and from less than 3.40 percent earlier this year. It is near its highest level in four months.
The two-year yield rose to 4.90 percent from 4.88 percent. It is close to a 16-year high.
Investors also are cutting expectations of U.S. corporate profits due to warnings inflation and interest rates might cool consumer demand.
In energy markets, benchmark U.S. crude edged up 3 cents to $78.19 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 47 cents on Thursday to $78.16. Brent crude, the price basis for international oil trading, advanced 5 cents to $84.80 per barrel in London. It gained 44 cents the previous session to $84.75.
The dollar declined to 136.33 yen from Thursday’s 136.76 yen. The euro gained to $1.0618 from $1.0590.
