Asian shares edge higher, tracking Wall Street rally

TOKYO (AP) — Asian shares advanced Friday, tracking a rally on Wall Street following reports suggesting the economy and corporate profits may be doing better than feared.

In Tokyo, data showed the core consumer price index was up 4.3%, slightly higher than expected and higher than the Bank of Japan’s target of 2%.

“This seeks to challenge an eventual policy shift for the central bank, although the government’s energy subsidies next month could be tapped on to push back any changes for now,” Yeap Jun Rong, a market analyst at IG, said in a commentary.

Japan's benchmark Nikkei 225 rose nearly 0.1% to finish at 27,382.56. Australia's S&P/ASX 200 added 0.3% to 7,493.80. South Korea's Kospi gained 0.6% to 2,484.02. Hong Kong's Hang Seng rose 0.3% to 22,634.93.

Markets remained closed in Shanghai for the Lunar New Year holidays.

Stocks climbed on Wall Street to their highest level in nearly eight weeks after the Commerce Department reported the U.S. economy expanded at a 2.9% annual pace in the last quarter, ending 2022 with momentum despite higher interest rates and widespread fears of a looming recession. That beat economists' forecasts for a 2.3% expansion.

The S&P 500 climbed 1.1% to clinch its highest finish since Dec. 2, at 4,060.43. The Dow climbed 0.6% to 33,949.41, and the Nasdaq composite gained 1.8% to 11,512.41.

More swings may still be ahead, as Wall Street digests a growing torrent of earnings and economic reports. Markets have veered up and down recently as worries about a severe recession and drop-off in profits battle against hopes the economy can manage a soft landing and the Federal Reserve may ease up on interest rates.

Other reports Thursday showed that orders for long-lasting goods from factories strengthened by more than expected in December...