Asian stocks mostly higher following U.S. inflation jump

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Shanghai fell, Tokyo was flat, while shares rose in Hong Kong, Seoul and Sydney.

BANGKOK — Shares were mostly higher in Asia on Friday after the S&P 500 index notched another record high despite a surge in U.S. consumer prices in May.

The worry is that if signs of inflation persist, central banks may move to withdraw stimulus from the economy to ease price pressures. Taking all factors into consideration, “that was all the street needed to return to its buy-everything happy place.” On Thursday, the S&P 500 SPX, +0.47% gained 0.5% to 4,239.18, just beating its previous all-time high set on May 7th. The Dow Jones Industrial Average DJIA, +0.06% edged up 0.1% to 34,466.24. The Nasdaq Composite COMP, +0.78% rose 0.8%, to 14,020.33, while smaller company stocks lagged the broader market. The Russell 2000 index RUT, -0.68% fell 0.7% to 2,311.41.

Bond yields initially rose after the inflation data, then fell broadly by late afternoon. The yield on the 10-year Treasury note TMUBMUSD10Y, 1.438% slipped to 1.43% from 1.45% late Thursday. Stocks have been meandering all week as investors waited for the update on inflation.

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