Asian stocks up after US inflation fuels rate hike fears

BEIJING (AP) — Asian stock markets rose Thursday after higher U.S. inflation stoked expectations of more rate hikes that investors worry will chill economic growth.

Shanghai, Tokyo, Hong Kong and Sydney advanced. Wall Street futures edged lower. Oil prices advanced.

Wall Street's benchmark S&P 500 index lost 0.4% on Wednesday after data showed U.S. consumer inflation accelerated to 9.1% in June over a year earlier from May's 8.6%. That was despite three rate hikes this year by the Federal Reserve.

Investors worry aggressive action by the Fed and other central banks to cool inflation that is at four-decade highs might derail global growth.

“Growth fears are hitting the markets harder than inflation concerns,” said Stephen Innes of SPI Asset Management in a report.

The Shanghai Composite Index picked up 0.4% to 3,295.83 and the Hang Seng in Hong Kong advanced 0.3% to 20,855.29.

Tokyo's Nikkei 225 gained 0.8% to 26,689.95. Panasonic Holdings rose 1.1% after the battery maker announced plans for a multibillion-dollar factory to supply Tesla and other automakers in Kansas.

Sydney’s S&P-ASX 200 added 0.4% to 6,646.60 after official data showed employment rose more than expected in June. The Kospi in Seoul edged 0.1% higher to 2,330.74.

India's Sensex gained 0.4% to 53,701.38. New Zealand and Jakarta advanced while Singapore and Bangkok declined.

The Federal Reserve and central banks in Britain, South Korea and some other countries have hiked rates to cool surging prices. The European Central Bank has similar plans.

Traders expect another Fed rate hike this month, probably matching last month's 0.75-percentage-point rise, the biggest in 28 years and three times the usual margin.

Fed officials say a recession is possible but not certain. They point to a strong U.S....