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Global market update: APAC shares open higher, GameStop extends rally

EditorOliver Gray
Published 15/05/2024, 10:29 am
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Investing.com - Asian Pacific markets opened on a positive note Wednesday, following another optimistic session on Wall Street overnight.

By 10:30 am AEST (12:30 am GMT) Australian shares added 0.7% and Japan's Nikkei 225 gained 1.1%, while the Kospi 200 in South Korea remained closed due to a public holiday.

In the United States, stock indexes traded near record highs as traders evaluated inflation reports and anticipated future consumer price trends. The producer-price index for April rose more than expected, but figures for March were revised downwards. Despite this, traders remained bullish, propelling the NASDAQ Composite up by 0.8% to a record close, its first since April 11. The S&P 500 and the Dow Jones Industrial Average also saw gains of 0.5% and 0.3%, respectively.

Investors are keenly awaiting Wednesday's release of the consumer-price index. If it presents a surprisingly high reading for April, it would be the fourth consecutive report to exceed expectations. Economists are predicting a 3.4% year-over-year rise in inflation.

In the world of meme stocks, GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC) saw significant trading activity, reminiscent of the trading frenzy of 2021, following a resurgence of interest on social media. GameStop shares closed 60% higher, while AMC saw a 32% increase.

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Chinese shares closed mixed, with gains in auto stocks balancing losses in the energy sector. Investors are keenly awaiting the earnings reports from Tencent and Alibaba (NYSE:BABA). The Shanghai Composite Index closed 0.1% lower, while the Shenzhen Composite Index rose by 0.35%.

Hong Kong's Hang Seng Index closed 0.2% lower, erasing earlier gains. Galaxy Entertainment fell by 3.9%, despite a surge in revenue in the first quarter. The most significant gains were seen by ESR Group, which rose by 26% after receiving a privatization proposal.

Japan's Nikkei Stock Average closed 0.5% higher, potentially adjusting ahead of the U.S. PPI data release. Suzuki Motor and Suntory Beverage & Food were among the top performers on Japan's benchmark index.

Indian shares ended higher, with easing concerns over domestic inflation. Auto and steel stocks led the gains, with Mahindra & Mahindra and Tata Motors seeing increases.

In the U.K., stocks rose, with the FTSE 100 Index gaining 0.2%. Ocado (LON:OCDO) Group PLC saw the biggest gain during the session, surging 8.1%. In Europe, the STOXX Europe 600 Index added 0.2%, Germany's DAX slipped 0.1%, and France's CAC 40 rose 0.2%.

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