ASX futures were 79 points or 1.15 per cent higher at 6963, which indicated a gain at the open.

On Friday, the S&P 500 gained 1.53%, while the Dow Jones Industrial Average was up 1.19% and the Nasdaq was up 2.11%. For the week, the gain was 2.7 percent for the Dow, 3.6 percent for the S&P 500 and 4.1 percent for the Nasdaq. The ASX 200 finished the week about 1% higher even as central banks in Australia, the EU and Canada raised interest rates in a marathon campaign to control inflation. The 2-year government yields in the local bond markets gained to 2.86% and the 10-year settled at 3.52%.

Oil continues to drop: crude oil prices hit January prices with (West Texas Index $86.38) and (Brent Crude $92.52). Iron ore rose 3.9% to $US103.65 per tonne and the Aussie Dollar was worth 68.46 cents USD.

Asia

Shares in China ended higher, adding to their narrow trading pattern in the run-up to a three-day holiday starting Saturday. Attention was also on CPI and PPI data for August and what they meant for the PBOC’s rate trajectory. The benchmark Shanghai Composite Index finished up 0.8% at 3262.05, and the Shenzhen Composite Index was up 0.7% at 2118.11. The tech-heavy ChiNext Price Index was the best performer, advancing 1.0% to 2548.22. Companies with a property bent, such as property managers, real-estate developers and home furnishing services providers, led the rebound, as analysts hoped for a sharp recovery in tidy homes sales in the next few months.

The Hang Seng Index in Hong Kong added 2.7 percent to 19362.25, breaking a six-session losing streak as easing inflation data for China in August supported expectations for more monetary easing. Most blue-chip stocks gained, propelled by property developers and tech shares, including Country Garden Holdings, up 17%, Longfor Group, up 7.4%, and Meituan, up 4.9%. Among the stock highlights, Bilibili fell 16% as its 2Q net loss expanded more than expected. Shares of Tencent Holdings snapped back by 1.7% after a 3.1% drop on Thursday, even after the company’s largest shareholder, Prosus, said it sold shares of the Chinese tech giant. The HSI lost 0.5% this week.

Japanese shares finished higher, helped by gains in shipping and pharmaceutical companies and a rebound in shares that fell as a result of the Fed’s tightening. Nippon Yusen advanced 3.7%, while Shionogi rose 2.8%. Airlines and tire makers lagged behind after crude oil prices rose. The Nikkei Stock Average gained 0.5% to 28214.75. Focus on crude oil and the yen. USD/JPY was last at 142.99, compared with 144.11 late Thursday in New York. The yield on the 10-year Japanese government bond was level at 0.245 percent.

Europe

European stocks climbed as investors shrugged off the European Central Bank’s faster-than-expected interest rate increases and Federal Reserve Chairman Jerome Powell’s remarks about ongoing efforts to tame inflation.

The Stoxx Europe 600 gained 1.5 percent and the German DAX and the French CAC 40 each rose 1.4 percent. The ECB raised interest rates on Thursday by 75 basis points, and Powell said the Fed would keep raising rates to tame inflation “until the job is done.” “Investors have now left the ECB hike and Powell’s commentary on more rate rises far behind, and the rally seen over the past two days has gained further strength,” wrote IG analyst Chris Beauchamp.

The London FTSE 100 index added 1.5% as mining and oil stocks gained on the back of higher crude and metal prices. Antofagasta, Anglo American, Glencore, Rio Tinto and BHP were the best blue-chip risers as precious and base-metal prices all rose, and BP and Shell were both more than 1% in demand as Brent crude added 1.5% to $90.51 a barrel. “A tentative bounce in shares carried into the Asia session despite Chairman Powell emphasizing the necessity for further rate increases to slow inflation as the U.S. dollar also gave back some of its gains,” IG analysts said in a note.

North America

On Friday, the S&P 500 rose 1.53 percent, while the Dow Jones industrial average rose 1.19 percent and the Nasdaq gained 2.11 percent. For the week, the Dow advanced 2.7 percent, the S&P 500 climbed 3.6 percent and the Nasdaq added 4.1 percent.

All eyes are on US CPI data which comes out on Tuesday morning in the US this week. The results will be an important input to the interest rate decision of the Federal Reserve Open Market Committee on September 21.