Global Shares Advance on Wall St. Rally01/16 04:55

   Global shares mostly rose Thursday, following a rally on Wall Street driven 
by encouraging update on U.S. inflation.

   TOKYO (AP) -- Global shares mostly rose Thursday, following a rally on Wall 
Street driven by encouraging update on U.S. inflation.

   France's CAC 40 edged up 1.4% in early trading to 7,576.97, while Germany's 
DAX was down less than 0.1% at 7,576.97. Britain's FTSE 100 rose 0.7% to 
8,355.34. The future for the S&P 500 was up 0.2% while that for the Dow Jones 
Industrial Average was nearly unchanged.

   In Asian trading, Japan's benchmark Nikkei 225 added 0.3% to finish at 
38,572.60.

   Bank of Japan data showed wholesale prices in Japan rose 3.8% in December 
last year compared to a year earlier, adding to pressures on the central bank 
to raise interest rates, possibly at a monetary policy meeting next week.

   In China, the Hang Seng in Hong Kong gained 1.2% to 19,522.89, while the 
Shanghai Composite index rose nearly 0.3% to 3,236.03.

   Australia's S&P/ASX 200 surged 1.4% to 8,327.00. South Korea's Kospi gained 
1.2% to 2,527.49.

   Treasury yields eased following an update on how much more U.S. households 
had to pay in December for eggs, gasoline, housing and other costs of living. 
The report said overall inflation accelerated to 2.9% from 2.7% in November.

   The latest U.S. inflation numbers were more encouraging underneath the 
surface. After ignoring prices for food and energy, which can zigzag sharply 
from month to month, underlying inflation trends slowed to 3.2% in December. 
Economists had thought it would remain at 3.3% for a fourth straight month, 
according to FactSet.

   The Federal Reserve pays more attention to that underlying number than the 
overall figure, and it's particularly welcome following worries that 
improvements in inflation have halted and that it will be tough to get all the 
way down to the Fed's 2% target.

   Wall Street has been lurching down and up for weeks as traders tear up their 
forecasts for what the Fed will do with interest rates in 2025. A further 
easing would boost the U.S. economy and prices for investments, but it could 
also give inflation more fuel.

   Few traders expect Wednesday's data to convince the Fed to cut its main 
interest rate at its meeting later this month, as it's done at three straight 
meetings since September. But economists and analysts say it could open the 
door for cuts later in the year, maybe even in March, if more data comes in to 
show that upward pressure on inflation is abating.

   In other dealings early Thursday, benchmark U.S. crude fell 8 cents to 
$78.63 a barrel. Brent crude, the international standard, was down 11 cents at 
$81.92 a barrel.

   The U.S. dollar declined to 155.72 Japanese yen from 156.47 yen. The euro 
cost $1.0288, down from $1.0289.