Asian shares track Wall St gains on cooler inflation data

BANGKOK (AP) — Stocks were mostly higher Wednesday in Asia after a rally on Wall Street spurred by news that inflation in the U.S. cooled more than expected last month.

The 7.1% consumer price index reading for November raised hopes Tuesday for easing pressure on the economy ahead of an interest rate policy update from the U.S. Federal Reserve.

The Fed is widely expected to raise its benchmark rate a half-point Wednesday, smaller than the past four hikes of three-quarters of a point.

Also Wednesday, the Bank of Japan’s quarterly “tankan” survey showed a deterioration in business conditions for major Japanese manufacturers, reflecting higher costs for industrial inputs and energy and weaker demand as the Fed and other central banks raise interest rates to tame inflation.

The headline index for large manufacturers was 7, down from 8 in the previous quarter and the fourth straight quarter of declines. The tankan measures corporate sentiment by subtracting the number of companies saying business conditions are negative from those responding they are positive.

Conditions for nonmanufacturers, such as service industries, rose to 19 from 14, as Japan lifted pandemic precautions and reopened to foreign tourists.

“Today’s Tankan survey suggests that while the services sector is going from strength to strength, the outlook for the manufacturing sector continues to worsen," Darren Tay of Capital Economics said in a commentary. He noted that capital spending projections also weakened slightly.

Tokyo's Nikkei 225 advanced 0.7% to 28,156.21 and the Hang Seng in Hong Kong added 0.6% to 19,722.16. South Korea's Kospi was up 1.1% to 2,399.25.

The Shanghai Composite index edged 0.1% lower to 3,172.33.

In Australia, the S&P/ASX 200 gained 0.7% to 7,251.30. India's Sensex gained...