Stock markets edge higher on upbeat Chinese economic data

·         Asian shares have traded higher after China data release

·         Fed’s Kashkari notes inflation may continue before tapering

·         Meta Platforms among tech stocks likely to see further gains

Stocks were higher across the Asian market on Monday even as concerns about China’s economic growth lagged.

Data showed Chinese retail sales and industrial output beat expectations, while there was also a decline in home prices. The upbeat outlook encouraged traders during the early session, although real-estate concerns add sell-off pressure on the sector’s shares.

Japan’s Nikkei was up 0.6%, South Korea’s Kospi edged 1.1% higher, and Hong Kong’s Hang Seng Index had added 0.3% at the time of writing. After early morning losses, China’s Shanghai Composite Index has clawed into the green zone with 0.2%.

Fed’s Kashkari: higher inflation to continue

US futures showed signs of positivity during early trades on Monday, with slight gains for the S&P 500 futures, the Dow futures, and Nasdaq futures.

Consumer sentiment across the global markets remains fragile as higher inflation concerns persist. On Sunday, Minneapolis Federal Reserve President Neel Kashkari noted that the market may continue to see higher inflation “over the next few months before they likely start to taper off.

The challenge is these high prices that families are paying, those are real, and people are experiencing that pain right now. And so, we take that very seriously, but I’m optimistic that it should be temporary, even though it is causing pain right now,” he told CBS News’ “Face the Nation”.

Meta Platforms, Netflix closed higher, Tesla slipped again

US markets closed higher on Friday as investors tried to shake off negative sentiment arising from the unexpected consumer prices data released earlier in the week.

The S&P 500 Index notched +0.72%, while the Dow Jones Industrials Index added +0.50%, and the Nasdaq 100 Index posted +1.04% amid a fresh upside for several technology stocks. 

Meta Platforms (FB), which rose amid interest in the metaverse space, closed at  +4%.  Netflix (NFLX), Activision Blizzard (ATVI), Intuit (INTU), Alphabet (GOOG), and Adobe (ADBE) also closed higher, adding more than 2% each to boost the sector. 

Tesla (TSLA) ended the week in red after consecutive selling of the stock by CEO Elon Musk. TSLA’s price closed more than -2% down on Friday and remains vulnerable after Musk revealed on Sunday that he could still sell more of his shares.

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