A currency trader walks by the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Monday, Sept. 5, 2022. Asian stock markets declined Monday after Wall Street ended last week lower and China tightened anti-virus controls. (AP Photo/Lee Jin-man)
A currency trader walks by the screen showing the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Monday, Sept. 5, 2022. Asian stock markets declined Monday after Wall Street ended last week lower and China tightened anti-virus controls. (AP Photo/Lee Jin-man)
A currency trader watches computer monitors at a foreign exchange dealing room in Seoul, South Korea, Monday, Sept. 5, 2022. Asian stock markets declined Monday after Wall Street ended last week lower and China tightened anti-virus controls. (AP Photo/Lee Jin-man)
A currency trader walks by the screens showing the foreign exchange rate between U.S. dollar and South Korean won, left, and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a foreign exchange dealing room in Seoul, South Korea, Monday, Sept. 5, 2022. Asian stock markets declined Monday after Wall Street ended last week lower and China tightened anti-virus controls. (AP Photo/Lee Jin-man)
A currency trader walks by the screens showing the foreign exchange rate between U.S. dollar and South Korean won, center, and the Korean Securities Dealers Automated Quotations (KOSDAQ), right, at a foreign exchange dealing room in Seoul, South Korea, Monday, Sept. 5, 2022. Asian stock markets declined Monday after Wall Street ended last week lower and China tightened anti-virus controls. (AP Photo/Lee Jin-man)An NYSE sign is seen on the floor at the New York Stock Exchange in New York, on June 15, 2022. Stocks are opening lower again on Wall Street, continuing a weak patch that has wiped out much of the gains the market made in July and early August. The S&P 500 lost about half a percent in the early going Thursday, Sept. 1. (AP Photo/Seth Wenig, File) Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Sept. 6, 2022. (AP Photo/Ahn Young-joon) A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Sept. 6, 2022. (AP Photo/Ahn Young-joon) A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Sept. 6, 2022. (AP Photo/Ahn Young-joon) A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Sept. 6, 2022. (AP Photo/Ahn Young-joon) A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Sept. 7, 2022, in Tokyo. Asian shares were mostly lower Wednesday, as pessimism prevailed about higher interest rates ahead and Wall Street shares fell for the fourth straight week. Oil prices fell, while the Japanese yen continued to decline against the U.S. dollar to nearly 144 yen. (AP Photo/Eugene Hoshiko) People stand in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Sept. 7, 2022, in Tokyo. Asian shares were mostly lower Wednesday, as pessimism prevailed about higher interest rates ahead and Wall Street shares fell for the fourth straight week. Oil prices fell, while the Japanese yen continued to decline against the U.S. dollar to nearly 144 yen. (AP Photo/Eugene Hoshiko) A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 and New York Dow indexes at a securities firm Wednesday, Sept. 7, 2022, in Tokyo. Asian shares were mostly lower Wednesday, as pessimism prevailed about higher interest rates ahead and Wall Street shares fell for the fourth straight week. Oil prices fell, while the Japanese yen continued to decline against the U.S. dollar to nearly 144 yen. (AP Photo/Eugene Hoshiko) A person wearing a protective mask stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Sept. 7, 2022, in Tokyo. Asian shares were mostly lower Wednesday, as pessimism prevailed about higher interest rates ahead and Wall Street shares fell for the fourth straight week. Oil prices fell, while the Japanese yen continued to decline against the U.S. dollar to nearly 144 yen. (AP Photo/Eugene Hoshiko) A person wearing a protective mask stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Sept. 7, 2022, in Tokyo. Asian shares were mostly lower Wednesday, as pessimism prevailed about higher interest rates ahead and Wall Street shares fell for the fourth straight week. Oil prices fell, while the Japanese yen continued to decline against the U.S. dollar to nearly 144 yen. (AP Photo/Eugene Hoshiko) 
A person walks past an electronic stock board showing Japan's Nikkei 225 index and U.S. dollar/Japanese yen exchange rate at a securities firm Wednesday, Sept. 7, 2022, in Tokyo. Asian shares were mostly lower Wednesday, as pessimism prevailed about higher interest rates ahead and Wall Street shares fell for the fourth straight week. Oil prices fell, while the Japanese yen continued to decline against the U.S. dollar to nearly 144 yen. (AP Photo/Eugene Hoshiko)
In this May 9, 2012 file photo, a Bed Bath & Beyond sign is shown in Mountain View, Calif. Bed Bath & Beyond has named its Chief Accounting Officer, Laura Crossen, as interim chief financial officer, Tuesday, Sept. 6, 2022, following the death of Gustavo Arnal. The home goods retailer said in a regulatory filing that Crossen will continue as its principal accounting officer while serving in the interim role. (AP Photo/Paul Sakuma, File)A currency trader watches monitors in front of screens showing the Korea Composite Stock Price Index (KOSPI), left, and the exchange rate of South Korean won against the U.S. dollar, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Sept. 8, 2022. Asian benchmarks mostly rose Thursday, as investor optimism got a perk from a rally on Wall Street that's on track to break a three-week losing streak. (AP Photo/Ahn Young-joon) A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Sept. 8, 2022. Asian benchmarks mostly rose Thursday, as investor optimism got a perk from a rally on Wall Street that's on track to break a three-week losing streak. (AP Photo/Ahn Young-joon) Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Sept. 8, 2022. Asian benchmarks mostly rose Thursday, as investor optimism got a perk from a rally on Wall Street that's on track to break a three-week losing streak. (AP Photo/Ahn Young-joon) A person wearing a protective mask stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Sept. 9, 2022, in Tokyo. Asian benchmarks rose Friday, cheered by gains on Wall Street as comments from the Federal Reserve chairman assured markets on the expected rate rise.(AP Photo/Eugene Hoshiko) A person wearing a protective mask walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Sept. 9, 2022, in Tokyo. Asian benchmarks rose Friday, cheered by gains on Wall Street as comments from the Federal Reserve chairman assured markets on the expected rate rise. (AP Photo/Eugene Hoshiko) A person wearing a protective mask walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Sept. 9, 2022, in Tokyo. Asian benchmarks rose Friday, cheered by gains on Wall Street as comments from the Federal Reserve chairman assured markets on the expected rate rise. (AP Photo/Eugene Hoshiko) A person wearing a protective mask stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Sept. 9, 2022, in Tokyo. Asian benchmarks rose Friday, cheered by gains on Wall Street as comments from the Federal Reserve chairman assured markets on the expected rate rise. (AP Photo/Eugene Hoshiko) A person wearing a protective mask rides a bicycle in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Sept. 9, 2022, in Tokyo. Asian benchmarks rose Friday, cheered by gains on Wall Street as comments from the Federal Reserve chairman assured markets on the expected rate rise. (AP Photo/Eugene Hoshiko) A person wearing a protective mask stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Sept. 9, 2022, in Tokyo. Asian benchmarks rose Friday, cheered by gains on Wall Street as comments from the Federal Reserve chairman assured markets on the expected rate rise.(AP Photo/Eugene Hoshiko) TOKYO (AP) — Global stock benchmarks rose Friday, as comments from the U.S. Federal Reserve chairman assured markets that interest rate increases will likely be within expectations.
France's CAC 40 added 0.7% in early trading to 6,168.33, while Germany's DAX gained 0.9% to 13,014.33. Britain's FTSE 100 rose nearly 1.1% to 7,338.96. U.S. shares were set to move higher with Dow futures up 0.4% at 31,902.00. S&P 500 futures rose 0.5% to 4,025.50. Oil prices rose.
Japan's benchmark Nikkei 225 rose 0.5% to finish at 28,214.75. Australia's S&P/ASX 200 added 0.7% to 6,894.20. Hong Kong's Hang Seng jumped 2.8% to 19,389.03, while the Shanghai Composite added 0.8% to 3,262.05. 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 have been mostly losing ground in recent weeks after the Federal Reserve indicated it will not let up anytime soon on raising interest rates to bring down the highest inflation in decades. The interest rate policies of the Fed and other central banks, which also have a powerful influence on stock and bond markets, have become a major focus for investors.
On the same day the European Central Bank delivered its big rate increase, Powell told a conference on monetary policy hosted by the Cato Institute, a think tank that promotes libertarian ideas, that the Fed would keep rates high “until the job is done” in getting inflation back down to its 2% goal.
“There is a record of failed attempts to get inflation under control, which only raises the ultimate costs to society,” Powell said.
The Fed has already raised rates four times this year and markets expect it to deliver another jumbo-sized increase of three-quarters of a percentage point at its next meeting in two weeks.
Powell “sounded very resolute in the (Fed’s) mission to squelch inflation, and as a result probably gave more credence to the possibility of a 75-basis point hike at the September meeting,” said Sam Stovall, chief investment strategist at CFRA.
“But once investors realized that he wasn’t really saying anything different than what he had said before, the markets swung back,” he said.
In energy trading, benchmark U.S. crude rose 92 cents to $84.46 a barrel. Brent crude, the international standard, added $1.08 to $90.23 a barrel.
In currency trading, the U.S. dollar fell to 142.29 yen from 144.09 yen. The euro cost $1.0098, up from $1.0002.
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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama
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