Global shares mostly gain after US tariff hike

National Business

Global shares mostly gain after US tariff hike

By YURI KAGEYAMA AP Business Writer

May 10, 2019 02:23 AM


Trader Ryan Falvey works on the floor of the New York Stock Exchange, Thursday, May 9, 2019. Stocks are opening broadly lower on Wall Street as investors keep a close eye on trade talks between the U.S. and China.

Richard Drew

AP Photo


Global shares were mostly higher on Friday in volatile trading, with mainland Chinese stocks bouncing more than 3% as regulators apparently stepped in to support the markets.

France’s CAC 40 gained 1.0% in early trading to 5,363.43, while Germany’s DAX added 1.0% to 12,098.30. Britain’s FTSE 100 rose 0.6% to 7,251.13. U.S. shares were set to open lower with Dow futures slipping 0.2% to 25,764.00. The S&P 500 future contract fell 0.3% to 2,863.90.

The Shanghai Composite index surged 3.1% to 2,939.21 while the A-share index in the smaller market of Shenzhen jumped 3.8%. Traders said Chinese institutional investors stepped up buying to support the market.

China’s Commerce Ministry said would take unspecified “necessary countermeasures” after the Trump administration raised duties on $200 billion of Chinese imports to 25% from 10%. The action came as trade negotiations were underway in Washington.

Chinese markets initially dipped and then rebounded.

“Part of this miraculous — and very local — recovery may be caused by intervention from the Chinese government. Yet, investors are also still clinging to the hope that the US and China will eventually manage to agree some sort of deal,” Rabobank said in a commentary.

Hong Kong’s Hang Seng gained 0.8% to 28,550.24, while Japan’s Nikkei 225 slipped 0.3% to finish at 21,344.92. Australia’s S&P/ASX 200 rose nearly 0.3% to 6,310.90. South Korea’s Kospi gained 0.3% to 2,108.04 and India’s Sensex edged 0.3% higher to 37,681.09. Shares fell in Taiwan but recovered in Thailand.

Analysts said China could raise tariffs on some U.S. exports, though the amount would not match the costs imposed by the increase in U.S. import duties. It could step up interference in U.S. companies’ deal-making and other areas.

The increased tensions, if not resolved soon by a deal between Beijing and Washington, could hurt growth across the region and beyond, said Rajiv Biswas of HIS Markit.

“The escalating U.S.-China trade war adds to significant existing headwinds already facing the Asia-Pacific region from a range of factors, including the sharp slowdown in global electronics new orders and weak new orders in the Eurozone manufacturing,” Biswas said.

ENERGY: Benchmark U.S. crude rose 34 cents to $62.04 a barrel in electronic trading on the New York Mercantile Exchange. It dropped 0.7% to settle at $61.70 per barrel overnight. Brent crude, the international standard, added 41 cents to $70.80 a barrel.

CURRENCIES: The dollar inched up to 109.83 Japanese yen from 109.77 yen. The euro strengthened to $1.1233 from $1.1216.


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