Asian shares rise after Wall Street rise, Fed Chair comments

TOKYO (AP) — Asian benchmarks rose Friday, cheered by gains on Wall Street as the Federal Reserve chairman assured markets over expected interest rate increases.

Japan's benchmark Nikkei 225 rose 0.6% in afternoon trading to 28,242.31. Australia's S&P/ASX 200 added 0.7% to 6,894.20. Hong Kong's Hang Seng jumped 2.6% to 19,339.03, while the Shanghai Composite added 0.8% to 3,261.34. Trading was closed in South Korea for a holiday.

“Ongoing recovery in the risk environment could provide a positive backdrop for the Asia session to end the week, although Chinese equities still seem to be finding some difficulty in tapping on the improved environment for some relief,” said Yeap Jun Rong, market strategist at IG in Singapore.

China has been releasing a slew of economic data, with more expected next week. Interest is high because of how China's zero-COVID policy has impacted economic activity in the world's second-largest economy.

Investors are also eyeing interest rates, as the European Central Bank made its largest-ever rate increase to fight inflation. The move is in line with steps taken by the U.S. Federal Reserve and other central banks.

Investors also heard from Fed Chair Jerome Powell, who reaffirmed the central bank’s commitment to keep rates high as long as necessary to get inflation under control. Some market observers remain skeptical.

“Given the tremendous challenges ahead on the energy front, the war front, and with broad-based inflation already impacting people’s lives, it might be wiser to maintain rates at slightly stimulatory levels to help offset the general economic pain rather than adding to it,” said Clifford Bennett, chief economist at ACY Securities.

Stocks bounced back on Wall Street, keeping the major indexes on track for their first weekly...