Asia shares inch up as chip selloff eases; US CPI awaited
SPY•Asian shares rose 0.8% as technology stocks recovered some losses, while investors awaited US inflation data. Oil climbed, and economists estimated September headline inflation accelerated to 3.6% year over year.
1. Asian shares advance
Asian shares edged higher on Wednesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.8% after hitting a ten-week low in the previous session. Samsung Electronics gained 2.4%, SK Hynix rose 0.8%, TSMC added 1.4% and SoftBank bounced 3.4%.
2. Oil and bonds
Gains were tempered by elevated oil prices and caution over energy supplies after two vessels were struck in the Strait of Hormuz. US crude rose 0.6% to $94.70 a barrel, while Brent reached $106.27. Longer-dated bonds rallied as investors sought safety; the 10-year Treasury yield was steady at 5.204% after touching its lowest in nearly two weeks.
3. Inflation in focus
Investors awaited US consumer price data for clues on the Federal Reserve’s rate outlook. Economists estimated headline inflation accelerated to an annual 3.6% in September, with core CPI up 0.2% from the prior month. Investors priced in roughly a 22% chance of an October rate hike ahead of the release. Chinese data showed producer prices rose at their fastest pace in more than four years, while consumer inflation edged up.
