FILE - In this July 6, 2015, file photo, American flags fly at the New York Stock Exchange on Wall Street, in New York. Global stock markets extended losses, Wednesday, Oct. 14, 2015, as lower Chinese inflation added to data suggesting slowing growth in the world’s No. 2 economy. (Mark Lennihan, File/Associated Press)
By Elaine Kurtenbach|AP October 15 at 1:38 AM
TOKYO — Asian shares gained Thursday as weak economic figures in the U.S. reinforced expectations the Federal Reserve will remain cautious over raising interest rates.
KEEPING SCORE: Japan’s Nikkei 225 rose 1.3 percent to 18,130.64 while Hong Kong’s Hang Seng index jumped 1.9 percent to 22,860.83. The South Korean Kospi added 1.1 percent to 2,030.72 and Australia’s S&P/ASX 200 gained 0.6 percent to 5,229.30. The Shanghai Composite Index was up 1.6 percent at 3,314.12. Shares in Southeast Asia also were higher.
U.S. DATA: Weak earnings guidance from Wal-Mart caused its stock to slump $6.70, or 10 percent, to $60.03, its worst one-day decline since January 1988. Meanwhile, a Federal Reserve report on Wednesday showed that factory output was sluggish in the late summer, while a separate report on retail sales indicated that Americans are still spending cautiously.
ANALYST VIEW: “Asian markets were loving the bad U.S. economic data today. ... The probability of a Fed rate hike in 2015 fell away considerably with the disappointing set of U.S. data last night,” Angus Nicholson of IG said in a commentary.
WALL STREET’S DAY: The Standard & Poor’s 500 index closed down 9.45 points, or 0.5 percent, to 1,994.24. The Dow Jones industrial average fell 157.14 points, or 0.9 percent, to 16,924.75. The Nasdaq composite fell 13.76 points, or 0.3 percent, to 4,782.85.
CURRENCIES: The dollar rose to 118.89 yen from 118.83 in the previous session. The euro also rose, to $1.1486 from $1.1474.
ENERGY: The price of benchmark U.S. crude fell 14 cents to $46.50 a barrel in electronic trading on the New York Mercantile Exchange. It fell 2 cents to close at $46.64 a barrel on Wednesday. Brent crude, used to price international oils, gained 8 cents to $49.77 a barrel in London.
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