Asian Shares Gain As Commodities Decline On Growth Worries

(RTTNews) - Asian stocks found some support on Friday as a continuous decline in commodities from crude oil, to metals to cotton, helped ease fears around runaway inflation. The U.S. dollar slipped from recent highs, bond yields mostly fell and gold held steady while oil extended recent losses on concerns over a slowdown in fuel demand.

China's Shanghai Composite index closed 0.89 percent higher at 3,349.75 amid signs that the technology crackdown is softening. Hong Kong's Hang Seng index rallied 2.09 percent to 21,719.06 after China vowed more pro-growth policies.

Japanese shares advanced as tech stocks tracked overnight gains on Wall Street. The Nikkei average jumped 1.23 percent to 26,491.97 while the broader Topix index closed 0.81 percent higher at 1,866.72.

Chip-making equipment maker Tokyo Electron surged 4 percent, Advantest rallied 3.5 percent and Screen Holdings added 2.7 percent. Pharmaceutical company Shionogi & Co soared 5 percent on share buyback news.

The battered yen found some support after Japan's annual core consumer inflation topped the central bank's target for a second straight month in May but wage growth was subdued, casting doubt over the sustainability of cost-push inflation.

Seoul stocks rose sharply, a day after hitting a 19-month low on growing concerns about a recession. The Kospi average climbed 2.26 percent to settle at 2,366.60 as institutional investors bought beaten-down tech stocks.

Samsung Electronics rose 1.7 percent, SK Hynix gained 1.6 percent and Naver surged 5.8 percent.

Australian markets ended notably higher, helped by gains in technology stocks as commodity-related energy and mining stocks fell on recession concerns.

Buy now, pay later firm Zip Co jumped 21.6 percent and rival Block Inc climbed nearly 11 percent. Qantas Airways dropped 1.6 percent after slashing domestic flight schedules through March 2023.

The benchmark S&P/ASX 200 index rose 0.77 percent to 6,578.70 while the broader All Ordinaries index closed 1.06 percent higher at 6,762.40. New Zealand's stock market was closed for a public holiday.

U.S. stocks posted solid gains overnight and U.S. Treasury yields hit two-week lows as commodity prices continued to ease on worries about a possible global recession.

The Dow rose 0.6 percent, the tech-heavy Nasdaq Composite climbed 1.6 percent and the S&P 500 added 1 percent.