BANGKOK — Shares rose in European trading after a retreat in Asia on Thursday following a report showing inflation in the U.S. was roughly as expected last month.
Germany’s DAX surged 1.2% to 19,223.90 and the CAC 40 in Paris advanced 0.8% to 7,274.79. Britain’s FTSE 100 edged 0.1% higher, to 8,042.07.
The futures for the S&P 500 and the Dow Jones Industrial Average were up 0.2%.
The dollar was trading at 156.10 Japanese yen, up from 155.49 yen, reflecting expectations that the greenback will gain against other currencies under policies anticipated with the incoming administration of President-elect Donald Trump.
Japan’s Nikkei 225 index fell 0.5% to 38,535.70 and the Kospi in South Korea gained 0.1% to 2,418.86. Australia’s S&P/ASX 200 gained 0.4% to 8,224.00.
Chinese markets tumbled, with the Hang Seng in Hong Kong falling 2% to 19,435.95. The Shanghai Composite index lost 1.7% to 3,379.84.
Bangkok’s SET lost 0.2% and Taiwan’s Taiex fell 0.6%, while the Sensex in India shed 0.2%.
A stronger dollar tends to put strain on other economies, noted Stephen Innes of Capital Economics. The Thai baht has also weakened against the dollar since the U.S. election, as has the Chinese yuan, or renminbi, which now stands at 7.2245 per dollar and was trading at about 7 yuan per dollar in early October.
“For Asia, particularly those economies closely linked to China, the dollar’s dominance is poised to become an economic wrecking ball,” he said in a commentary. “Countries with hefty USD-denominated debt are bracing for impact,” he added.
On Wednesday, U.S. stocks drifted to a mixed finish after the latest inflation update boosted hopes that a cut to interest rates next month will bring more help for the economy.
The S&P 500 was nearly unchanged, losing than 0.1% in its first loss since a big rally erupted after the Nov. 5 election. The Dow Jones Industrial Average added 0.1%, and the Nasdaq composite slipped 0.3%.
U.S. consumer inflation accelerated in October to 2.6% from 2.4%, but an underlying measure called “core inflation” did not rise. Such core inflation can be a better predictor of future trends, economists say, so the figures added to expectations for more help from the Federal Reserve.
T rump’s victory in the presidential election has raised uncertainty over the Fed’s future course. The U.S. central bank began cutting interest rates from their two-decade high in September to keep the job market hummin g after bringing inflation nearly all the way down to its target of 2%. It cut again earlier this month, and traders now see an improved probability of roughly 80% for a third cut at its meeting next month, according to data from CME Group.
Economists say Trump’s preferences for lower tax rates, higher tariffs and less regulation could ultimately lead to higher U.S. government debt and inflation, but also bring faster economic growth.
While lower interest rates can give a boost to the economy and to prices for investments, they can also fuel inflation.
In the crypto market, bitcoin was trading at $91,590 after crossing above $93,000 as cryptocurrencies generally soared. Trump has embraced cryptocurrencies, pledging to make the U.S. the crypto capital of the world.
In other dealings early Thursday, U.S. benchmark crude oil shed 9 cents to $68.34 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, gave up 2 cents to $72.26 per barrel.
The euro fell to $1.0513 from $1.0587.