Shares in the Asia-Pacific jumped on Friday, taking the lead from Wall Street overnight as investors shook off a strong inflation report.
The Nikkei 225 in Japan was 3.25% higher at 27,090.76, while the Topix gained 2.35% to 1,898.19. Japan's yen plunged to its lowest levels against the U.S. dollar since 1990 overnight before paring losses, and is still trading at 147-levels.
The Hang Seng index in Hong Kong was 1.93% higher in the final hour of trade after climbing 3.9% earlier in the session, and the Hang Seng Tech index was up 2.16%. In mainland China, the Shanghai Composite was up 1.84% at 3,071.99 and the Shenzhen Component rose 2.81% to 11,121.72.
In Australia, the S&P/ASX 200 gained 1.75% to 6,758.80. South Korea's Kospi advanced 2.3% to 2,212.55 and the Kosdaq climbed 4.09% to 678.24. MSCI's broadest index of Asia-Pacific shares outside Japan was 2.15% higher.
Singapore's GDP grew 4.4% in the third quarter and is expected to further tighten its monetary policy.
In the U.S., inflation data showed consumer prices increased more than expected in September, with CPI rising 0.4% from August, and 8.2% from September last year. Core inflation accelerated even faster in September.
Stocks had a volatile session but ultimately rebounded to close higher, with each major index gaining more than 2%. The Dow Jones Industrial Average soared 1,500 points from its lows to the highest level on Thursday in the U.S.
"Equity investors seemingly decided that a stronger U.S. inflation [report] today still doesn't negate expectations of a sharp declines in prices ahead," Rodrigo Catril, currency strategist at National Australia Bank, wrote in a note Friday. He added that the rally could have been a result of short-covering.
— CNBC's Jeff Cox, Carmen Reinicke and Alex Harring contributed to this report.
It's not the right time to invest in semiconductor stocks yet, says analyst
Investors should not get into the chip space yet, said chairman of Kirkland Capital, Kirk Yang, explaining that he is cautious of Taiwan and the global semiconductor landscape.
Yang said the chip sector now faces a demand-side problem due to higher interest rates, the U.S. imposing restrictions on exports to China, as well as inventory corrections.
"Unfortunately, we'll continue to see negative data points for [the] next several quarters," Yang projected.
"Probably a better time to get into semiconductor stocks sometime in the first half of next year."
— Lee Ying Shan
U.S. unemployment will overshoot on continued rate hikes, economist
With the Federal Reserve expected to undertake more aggressive interest rate hikes, unemployment in the U.S. will rise higher than forecast, RBC Capital Markets chief U.S. economist Tom Porcelli says.
Porcelli expects three more 75 basis-point hikes and predicts the Fed will get to a terminal rate of 4.75%.
"But I do not believe that, you know, putting three additional 75 basis point hikes in the system is going to sort of quell near term inflationary dynamics," he said on CNBC's Squawk Box Asia on Friday.
"What it will do is raise the unemployment rate meaningfully higher than what they're forecasting for next year, which is to say, 4.4%," he said. "There's no way you will have a 4.4% unemployment rate with a Fed that aggressive."
At 4.75%, unemployment would be at 5% which equates to about 2 million job losses, Porcelli adds. The current U.S. unemployment rate is 3.5%.
— Su-Lin Tan
CNBC Pro: Don’t let the volatility 'scare you out of stocks’: What to buy right now
"Bear markets are no fun. But we do know that every bear market is eventually followed by a bull market and the trick is not to let the market volatility scare you out of stocks," Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments, said.
She believes investors should seize the opportunity to put money in the "highest quality names" amid the current market weakness, naming four stocks she likes.
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— Zavier Ong
TSMC surges more than 5% after third-quarter net profit beats estimates
Shares of Taiwan Semiconductor Manufacturing Company jumped as much as 5.31% after its earnings topped estimates, with third-quarter net profits surging almost 80% from a year ago.
The Apple supplier's net income rose to 280.9 billion new Taiwan dollars ($8.81 billion) for the July-September quarter – compared with 156.26 billion new Taiwan dollars for the same period in 2021.
TSMC's stock was last up 4.94%.
– Jihye Lee
Currency check: Japan's yen at 32-year low, Australian dollar strengthens
The Japanese yen fell to a 32-year low against the dollar overnight and hovered around 147-levels in Asia's morning.
The yen touched 147.67 per dollar after the U.S. inflation report came in hotter than expected, reaching weakest levels since August 1990. It last traded at 147.30 against the greenback.
Meanwhile, the Australian dollar strengthened to $0.6329 after falling to $0.6169 following the U.S. CPI data release.
"AUD quickly recovered its losses, helped by reports that the UK government would change part of its proposed fiscal policy," Kim Mundy, a currency strategist at Commonwealth Bank of Australia, wrote in a note.
— Abigail Ng
Singapore's central bank tightens monetary policy as expected
The Monetary Authority of Singapore tightened its monetary policy in a widely expected move as inflation pressures weigh on the economy.
The central bank said it will re-center the mid-point of its exchange rate policy band known as the Singapore dollar Nominal Effective Exchange Rate. The MAS left the slope and width of the policy band unchanged.
Singapore controls policy through its exchange rate rather than interest rates. It manages the strength or weakness of the Singapore dollar against its main trading partners. Inflation stood at 7.5% in August.
— Abigail Ng
China's September consumer price index grows at fastest pace since April 2020
China's September consumer price index grew annually at 2.8%, the fastest pace since April 2020, pushed higher by food costs. Food prices rose by 8.8% annually.
The nation's CPI rose by 0.3% in September from August, missing estimates of 0.4% in a Reuters poll.
The producer price index for the month grew 0.9% compared to a year ago, also missing expectations of 1% that economists surveyed by Reuters predicted.
— Jihye Lee
Singapore's GDP for the third quarter comes in at 4.4%
Singapore's gross domestic product grew 4.4% in the third quarter from the same period last year, according to advance estimates released by the government, much higher than 3.4% predicted by analysts in a Reuters poll, and in line with growth in the second quarter.
GDP in the third quarter also expanded 1.5% from the previous quarter on a seasonally adjusted basis, meaning Singapore avoided a technical recession. Second-quarter GDP contracted 0.2% from the first quarter.
The Ministry of Trade and Industry in August narrowed Singapore's GDP forecast for 2022 to 3% to 4%, compared to an earlier 3% to 5%.
Read more here.
— Abigail Ng
CNBC Pro: Stocks in this key market are outperforming the S&P 500 — and it's not where you might expect
The S&P 500 has lost 25% of its value so far this year, but could still fall by "another easy 20%," JPMorgan Chase CEO Jamie Dimon predicted on Monday.
Its sharp decline is a familiar story around the world, as investors flee stocks. But one "surprising" index is bucking the trend and beating the S&P 500 this year.
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— Zavier Ong
Stocks close higher after remarkable Thursday reversal
Stocks closed higher Thursday after staging a major reversal in intraday trading.
The Dow Jones Industrial Average rose 827 points, or 2.83%, to close at 30,038.06 after being down more than 500 points earlier in the day.
The S&P 500 ticked up 2.60% to 3,669.87, breaking a six-day losing streak. The Nasdaq Composite gained 2.23% to end the day at 10,649.15.