Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Oct. 14, 2021. Asian shares were mostly higher on Thursday, tracking an overnight rally on Wall Street as investors sought out bargains, including technology stocks. (AP Photo/Ahn Young-joon)
TOKYO (AP) — Global shares were mostly higher Thursday, with European benchmarks tracking gains in Asia.
Stock prices rose in Paris, London and Tokyo, while Shanghai shares were little changed after the release of data showing producer price inflation at a record high in September.
Concerns about inflation and how price pressures might affect central bank policy, consumer spending and corporate profits remain a key focus for investors, and economists have been trimming economic growth estimates in response.
France's CAC 40 gained 0.7% in early trading to 6,646.16. Germany's DAX was up 0.8% at 15,363.06. Britain's FTSE 100 climbed 0.7% to 7,190.95. The future for the Dow industrials rose 0.6% to 34,445.00. The future contract for the S&P 500 was 0.7% higher at 4,384.75.
The Shanghai Composite index inched down nearly 0.1% to 3,558.28, after the government reported a surge in producer price inflation, which rose to 10.7% over a year earlier in September from 9.5% in August.
Much of the increase was due to surging coal prices, which appear not to have fed into consumer prices even as parts of the country contend with power shortages, Capital Economics said in a report. Consumer price inflation slipped to 0.7% from 0.8% in August.
Also Thursday, the Monetary Authority of Singapore raised a benchmark interest rate, citing price pressures. The move to allow the Singapore dollar to appreciate slightly against the U.S. dollar, widening the trading band from 0%, coincided with news that the city-state's economy grew at a 6.5% annual pace in July-September.
Japan's benchmark Nikkei 225 added 1.5% to finish at 28,550.93, as its new prime minister, Fumio Kishida, dissolved parliament ahead of an Oct. 31 general election. In office for about a week, Kishida has already flipflopped on major policies. But a splintered opposition means the ruling Liberal Democratic Party may still have an advantage, despite growing public disenchantment over a stagnating economy and the government's coronavirus measures.
South Korea's Kospi jumped 1.5% to 2,988.64. Australia's S&P/ASX 200 added 0.5% to 7,311.70. Hong Kong's trading was closed for a holiday.
Investors will get an update on U.S. consumer spending on Friday when the Commerce Department reports retail sales for September.
In energy trading, benchmark U.S. crude jumped $1.01 to $81.45 a barrel in electronic trading on the New York Mercantile Exchange. It lost 20 cents to $80.44 on Wednesday. Brent crude, the international standard, rose $1.07 cents to $84.25 a barrel.
In currency trading, the U.S. dollar rose to 113.33 Japanese yen from 113.23 yen. The euro cost $1.16171, up from $1.1592.
Yuri Kageyama is on Twitter https://twitter.com/yurikageyama7 Stocks to Buy That Will Benefit From Inflation
There are two narratives that are getting conflated when it comes to inflation. The first is whether or not inflation is occurring. And the second is whether inflation will get out of control.
To the first point, the clear answer is absolutely. There are price increases in everything from commodities to semiconductor chips. And even though lumber prices have gone down it’s a good bet that many consumers will put off their deck projects for another day.
And, of course, inflation numbers tend to strip out gas and groceries – but those are precisely the areas where consumers feel inflation the most. Inflation is real.
But is this just “transitory” as many analysts and the Fed itself claim? Or is it only the beginning of something much worse? The answer to those questions is probably above our pay grade.
As an investor, the inflation narrative only changes where you allocate your investment dollars. And for the most part, you’re probably only looking at a small percentage of your portfolio.
However, the first rule of investing is to not lose money so it’s important to identify companies that can provide a hedge against inflation – transitory or otherwise.
That’s the focus of this special presentation. Right now there are many strong companies that benefit when inflation is on the rise.
View the "7 Stocks to Buy That Will Benefit From Inflation"