Global Shares Rise as Inflation Fears Ease

Global shares kicked off the week on a positive note, with Tokyo’s Nikkei 225 index leading the charge with a 2.4% gain. Investors were buoyed by easing inflation concerns, which have lowered the chances of another Federal Reserve rate hike. However, gains were modest elsewhere due to a lack of other significant market-moving news.

In Europe, France’s CAC 40 dropped 1.1% to 7,813.40, while Germany’s DAX saw minimal movement, rising less than 0.1% to 25,242.92. The FTSE 100 in Britain climbed 0.5% to 10,511.80. Meanwhile, futures for the S&P 500 and Dow Jones Industrial Average fell slightly by 0.1%.

Asia’s performance was mixed. Japan’s Nikkei 225 briefly surpassed 70,000 points for the first time in three months before closing at 69,946.86. Australia’s S&P/ASX 200 remained nearly flat, edging up less than 0.1% to 8,686.40, and Hong Kong’s Hang Seng gained 0.3% to 24,040.34. Trading was halted in Shanghai and South Korea due to national holidays.

Shares linked to artificial intelligence saw increased interest. Tokyo Electron surged 5.5%, SoftBank Group climbed 3%, and Taiwan Semiconductor Manufacturing Co. (TSMC) rose 3%. This week will feature key U.S. economic updates, including data on the services sector, unemployment, and consumer sentiment. Last week’s jobs report showed a slower hiring pace than expected, easing inflation fears and reducing the likelihood of a Fed rate hike.