Asia stocks rise after Fed chair says U.S. inflation temporary

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Asian stock markets followed Wall Street higher on Wednesday after the Federal Reserve chairman said a U.S. inflation spike probably is temporary, helping to calm fears central bankers might feel pressure to roll back economic stimulus.

Overnight, Wall Street's benchmark S&P 500 index rose 0.5% to near last week's all-time high after Fed chairman Jerome Powell said inflation is mostly in areas that suffer supply shortages. He said inflation that hit 5% over a year earlier in May is likely to subside as economic activity revives.

Also Wednesday, the preliminary version of a monthly survey of Japanese manufacturers showed activity weakened this month amid shortages of processor chips and anti-coronavirus restrictions. Measures of production, output and export orders all declined. The Dow Jones Industrial Average gained 0.2% to 33,945.58 and the Nasdaq composite rose 0.8% to 14,253.27.

 

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'Tis rather strange that you write 'CTV', but then write 'U.S.' -- inconsistent. U.S. -- incorrect, archaic, oldfartesque US -- correct Periods/full-stops do not appear in acronyms and initialisms. reference: Fowler's Modern English Usage

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