US stocks rose on Friday, putting the Standard & Poor’s Index on track for the fourth consecutive positive week, on hopes that inflation will peak.
The Dow Jones Industrial Average added 126 points, or about 0.4%, while Standard & Poor’s rose 0.7%, and the Nasdaq rose 1%.
Bolstered by positive news on the inflation front, the CPI was flat from June to July, thanks in large part to lower gas prices, which brought down headline inflation. The increase in product prices showed a sudden decrease. On Friday, import prices fell more than expected.
This week’s moves extended the market’s rally from its mid-June lows. Friday entered the S&P up 14.7% since the lows, while the Dow Jones rose 11.5% and the Nasdaq Composite rose 20.0%.
European stocks
European shares gained Friday at the open after Sanofi and GlaxoSmithKline led a recovery in healthcare stocks, and the main Stoxx 600 index is poised for weekly gains.
Sanofi rose 1.6 percent, while GlaxoSmithKline rose 3.0 percent, after heavy selling in the previous session due to concerns about a US lawsuit focused on a heartburn drug because it may contain a carcinogen.
And the health care sector in Europe advanced 0.4 percent, while the European Stoxx 600 index rose 0.1 percent.
The main index rose for the second day in a row and is heading for a weekly gain of one percent; A weaker-than-expected US inflation reading calmed concerns about the Federal Reserve’s monetary tightening cycle.
Japan shares
Japan’s Nikkei index closed at a seven-month high on Friday, led by shares of SoftBank Group and other heavyweights in the technology sector; Signs of slowing inflation in the US have raised hopes of a milder interest rate hike by the Federal Reserve and boosted risk appetite.
The Nikkei index jumped 2.62 percent to 28,546.98 points, its highest closing level since January 12.
The index, which recorded the largest daily gain in three weeks, rose 1.32 percent during the week, achieving the second consecutive weekly gain.
The broader Topix index advanced 2.04 percent to 1973.18 points and rose 1.34 percent during the week.
SoftBank Group Inc jumped 5.55 percent, providing the biggest boost to the Nikkei index, after the technology investment group said it would gain $34.1 billion by reducing its stake in Alibaba Group Holdings.
And Tokyo Electron chip-making equipment advanced 4.53 percent, and robotics maker Fanuc rose 5.89 percent.
Honda Motor Co. rose 3.82 percent after the automaker raised its full-year operating profit forecast thanks to a weak yen. All 33 of the Tokyo Stock Exchange’s sub-sector indices rose.
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