Asian stocks follow Wall St higher as inflation fears ease

BEIJING (AP) — Asian stock markets followed Wall Street higher Tuesday as inflation fears eased and investors regained an appetite for risk. Market benchmarks in Shanghai, Tokyo, Hong Kong and Seoul advanced.

Overnight, Wall Street’s benchmark S&P 500 index rose 1%, recovering about half of last week’s losses. Gains were led by tech stocks.

Investors worry a global economic recovery might be hampered if rising inflation prompts governments and central banks to withdraw stimulus. But a Federal Reserve official helped to allay some of those fears when he said Tuesday the U.S. central bank shouldn’t look at changing policy in the midst of the coronavirus pandemic.

“U.S. markets delivered a positive start for the week, as easing inflation concerns drive a bounce in tech,” said Yeap Jun Rong of IG in a report.

The Shanghai Composite Index rose 1.8% to 3,558.89 while the Nikkei 225 in Tokyo gained 0.5% to 28,501.74. The Hang Seng in Hong Kong advanced 1.4% to 28,802.71.

The Kospi in Seoul was 0.6% to 3,162.70 and the S&P-ASX 200 in Sydney added 0.6% to 7,090.90.

India’s Sensex opened 0.2% higher at 50,738.86. New Zealand declined while Southeast Asian markets advanced.

Stocks fell after hitting a record high May 7 amid growing concern higher inflation as economies revive would disrupt commerce or prompt governments to roll back stimulus spending and easy credit.

On Monday, the president of the St. Louis Federal Reserve Bank, James Bullard, told Yahoo Finance more inflation was “not really a surprise” and it wasn’t time to rethink monetary policy.

Fed officials said earlier the U.S. economy would be allowed to “run hot,” with inflation above the central bank’s 2% target, to ensure a recovery is established.

“I think...