Asian Markets Rise After US Rally
Asian shares rose on Wednesday, led by Japan's Nikkei 225, following a second day of gains on Wall Street. The Nikkei jumped 2.1%, while Australia's ASX 200 rose 0.3% and South Korea's Kospi added 1.9%. Hong Kong's Hang Seng gained 1.3% and the Shanghai Composite was up 0.2%.
On Tuesday, the S&P 500 climbed 1.2%, the Dow Jones rose 0.7%, and the Nasdaq jumped 1.6%. A weaker-than-expected report on U.S. business activity helped support the market, as did strong earnings reports from several companies.
However, concerns remain about inflation and the possibility of higher interest rates. Top officials at the Federal Reserve warned last week that they may need to keep interest rates high for a while to ensure inflation is heading down to their 2% target. This has raised worries about stalled progress on inflation and the possibility of a recession.
Despite these concerns, Tuesday's report suggesting a slowdown in growth for overall business activity was welcomed by investors. It could keep the door open for the Fed to cut interest rates later this year.