Asian stocks follow Wall St up on hopes of rate hikes easing

BEIJING (AP) — Asian stock markets followed Wall Street higher on Wednesday as hopes rose that the Federal Reserve might ease off plans for interest rate hikes and Britain installed its third prime minister this year.

Shanghai, Tokyo, Hong Kong and Sydney gained. Oil prices declined.

Wall Street's benchmark S&P 500 index gained after bond prices rose, suggesting some investors expect the Fed to ease off rate hikes as economic activity cools.

Traders see weaker U.S. housing prices and other data as support for a “dial back” of Fed plans at its December meeting, said Vishnu Varathan of Mizuho Bank in a report.

The new British prime minister, Rishi Sunak, warned Tuesday of a “profound economic crisis,” but his arrival appeared to reassure markets that were rattled by his predecessor's economic plans. The battered pound edged higher against the U.S. dollar.

The Shanghai Composite Index rose 0.9% to 3,001.44 and the Hang Seng in Hong Kong gained 0.9% to 15,300.40.

The Nikkei 225 in Tokyo advanced 0.8% to 27,466.82 ahead of the expected release of a stimulus package this week that reportedly could exceed 20 trillion yen ($140 billion).

The Kospi in Seoul added 0.6% to 2,248.73. Sydney's S&P-ASX 200 rose 0.2% to 6,810.90 after the government reported Australian inflation rose to 7.3% in the three months ending in September.

New Zealand and Southeast Asian markets rose. Indian markets were closed for a holiday.

On Wall Street, the S&P 500 gained 1.6% 3,859.11. The Dow Jones Industrial Average rose 1.1% to 31,836.74. The Nasdaq advanced 2.3% to 11,199.12.

Tech stocks, retailers and communication companies were among the biggest drivers.

Investors are looking at corporate results to see how inflation that is at multidecade highs is affecting consumer spending.

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