Asian Stocks Rise Following Another Round of Wall Street Records

Asian shares saw a boost on Thursday as U.S. stocks hit record highs, fueled by optimism that inflation is under control. The positive sentiment was driven by a report showing a slower increase in consumer prices in April compared to the previous month.

In Asian trading, Tokyo’s Nikkei 225 index surged 1.4%, despite the Japanese economy contracting in the first quarter. Hong Kong’s Hang Seng index also rose 1.5%, while the Shanghai Composite index dipped slightly. Australia’s S&P/ASX 200 and South Korea’s Kospi both posted gains, along with Taiwan’s Taiex and India’s Sensex.

On Wall Street, the S&P 500, Dow Jones Industrial Average, and Nasdaq all closed higher, with tech stocks and homebuilders leading the way. Real estate and utility stocks also saw gains, as investors anticipated lower interest rates.

However, not all stocks fared well, with GameStop and AMC Entertainment experiencing losses after initial gains earlier in the week. AMC Entertainment announced plans to issue new shares to reduce debt, causing its stock to drop 20%.

The bond market also saw movement, with yields on the 10-year Treasury easing slightly. Traders are now predicting a high probability of a Fed rate cut this year, which could further impact market dynamics.

Overall, the market remains optimistic about the direction of inflation and interest rates, with investors closely watching economic indicators for further clues on the future trajectory of the global economy.