Stock market today: Asia follows Wall Street up on hopes Fed will ease off rate hikes

Stock market today: Asia follows Wall Street up on hopes Fed will ease off rate hikes

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A pedestrian walks past the electronic screen of the Hong Kong Stock Exchange in Hong Kong on Friday, June 2, 2103 The Asian stock market followed Wall Street's lead on Friday, following a positive update on the U.S. job market and after Federal Reserve officials suggested they may not raise interest rates this month.

Louise Delmotte/AP

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A pedestrian walks past the electronic screen of the Hong Kong Stock Exchange in Hong Kong on Friday, June 2, 2103 The Asian stock market followed Wall Street's lead on Friday, following a positive update on the U.S. job market and after Federal Reserve officials suggested they may not raise interest rates this month.

Louise Delmotte/AP

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A pedestrian walks past the electronic screen of the Hong Kong Stock Exchange in Hong Kong on Friday, June 2, 2103 The Asian stock market followed Wall Street's lead on Friday, following a positive update on the U.S. job market and after Federal Reserve officials suggested they may not raise interest rates this month.

Louise Delmotte/AP

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BEIJING, China (AP) - Asian stock markets rose Friday in response to a U.S. employment update. Federal Reserve officials rekindled hopes that another rate hike could be delayed.

Shanghai, Tokyo and Hong Kong all advanced after U.S. lawmakers voted to approve a deal that would prevent a default on government debt. Oil prices strengthened.

The S&P 500, the benchmark index of Wall Street, rose 1% Thursday following data showing a decline in manufacturing and retail activities. This added to the hope that the Fed may decide that upward pressure on prices has eased and rate increases can be delayed or scaled back.

Philip Jefferson, a member of the board, said that "skipping a rate increase" at this month's Fed would allow policymakers to'see more information before making decisions'. Patrick Harker, the president of Federal Reserve Bank of Philadelphia made similar remarks.

James Knightley, ING's report said that the statements'reignited' the possibility of skipping a raise after strong job data last week fueled fears of further increases.

Knightley stated that, if the monthly U.S. Government report, due on Friday, shows a strong job market, it 'could easily shift things in favor of an increase.

The Senate approved an agreement late Thursday to increase the amount of borrowing the government is allowed to do in exchange for cuts to spending.

The move was widely anticipated and removed the default threat that had roiled the markets last week, before President Joe Biden negotiated with House Speaker Kevin McCarthy to reach a compromise.

The Nikkei225 in Tokyo gained 1% and the Shanghai Composite Index rose 0.8% to 3229.06. Hong Kong's Hang Seng soared by 3.7% to 18,883.22.

The Kospi in Seoul increased by 1.1%, to 2,595.55, and the S&P ASX 200 index in Sydney rose by less than 0.1%, to 7,130.20.

India's Sensex opened at 62,434.48 with a gain of less than 0.1%. New Zealand fell, while Bangkok rose. Singapore and Indonesia closed their markets for the holidays.

Wall Street saw the S&P 500 rise to 4,221.02. The Dow Jones Industrial Average rose 0.5% to 33 061.57, and the Nasdaq Composite climbed 1.3% to 13 100.98.

Investors are more concerned with whether the economy will enter a recession or if inflation will decline enough for the Fed to reduce rate hikes.

In a report released on Thursday, fewer people than expected applied for unemployment benefits in the past week. Another revealed that employers' payrolls increased more than anticipated last month.

The Fed is concerned that a strong economy could lead to inflation.

According to a report by the Institute for Supply Management, manufacturing contracted for a seventh consecutive month in May. The decline was greater than the previous month as well as what economists had expected.

After those reports, traders bet largely on the Fed holding rates steady. Jefferson said, however, that this wouldn't mean an end to rate hikes.

Apple, Microsoft and Amazon each rose by at least 1,3%. They are among the most valuable companies on Wall Street, so their movements have extra weight in the S&P 500.

Dollar General fell 19.5% after it reported lower profits and revenues for the last quarter than analysts had expected. It is a retailer that caters to lower-income households.

Macy's (which also owns Bloomingdale's) rose by 1.2% following a better-than expected profit, but lower revenue than forecast. The company also cut its expectations for the coming year, saying that shoppers started to slow down in March.

The recent Wall Street frenzy over artificial intelligence has also subsided.

C3.ai's forecast of revenue for the upcoming fiscal period failed to impress Wall Street as Nvidia did last week. C3.ai fell 13.2% but is still up 210% this year. Nvidia rose by 5.1%.

On the New York Mercantile Exchange, electronic trading of benchmark U.S. Crude rose 35 cents per barrel to $70.45. On Thursday, the contract increased by $2.01 to $70.10. Brent crude, which is the basis of international oil trading, increased 39 cents per barrel to $74.67 in London. The previous session, it gained $1.68 to $74.28.

The dollar rose to 138.94 from 138.86 on Thursday. The euro rose to $1.0764, up from $1.0762.