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World stocks higher after Wall St gains on recovery hopes Asia stocks lower after Wall Street gains on recovery hopes
(about 2 hours later)
BEIJING — World markets followed Wall Street higher Wednesday on hopes for a global economic recovery. BEIJING — Major Asian stock markets declined Wednesday after Wall Street gained on hopes for a global economic recovery and Japan’s exports sank.
London and Frankfurt opened higher. Benchmarks in Shanghai, Hong Kong and Seoul rose after early losses. Tokyo retreated after Japan reported its exports sank in May. Market benchmarks in Shanghai, Tokyo, Hong Kong and Seoul retreated.
Global share prices have regained most of this year’s losses as investors count on a rebound from the coronavirus pandemic despite rising infections in the United States, Brazil and some other major countries. Wall Street’s benchmark S&P 500 index rose for a third day, gaining 1.9% on Tuesday after U.S. retail spending was stronger than expected.
Analysts warn the gains are bigger and faster than justified by the uncertain economic outlook. Also Tuesday, the Federal Reserve promised to keep its policy ultra-loose to support business activity.
Futures for the S&P 500 index and the Dow Jones Industrial Average were up 0.4% after the benchmark S&P 500 index added 1.9% on Tuesday for its third daily gain. That followed data showing U.S. retail spending was stronger than expected. Global stock markets have regained most of this year’s losses as investors look ahead to a rebound from the coronavirus pandemic despite rising infections in the United States, Brazil and some other major countries.
Analysts warn the gains might be too big and too fast to be justified by the uncertain economic outlook.
U.S. retail figures showing an 18% gain over the previous month are encouraging but still $50 billion below what might have been expected without the coronavirus, said Rob Carnell of ING in a report.U.S. retail figures showing an 18% gain over the previous month are encouraging but still $50 billion below what might have been expected without the coronavirus, said Rob Carnell of ING in a report.
“We don’t imagine markets will share this nuanced view.” said Carnell. “They will likely make the most of any good news and continue to be dismissive of any bad news.”“We don’t imagine markets will share this nuanced view.” said Carnell. “They will likely make the most of any good news and continue to be dismissive of any bad news.”
On Wednesday in London, the FTSE 100 opened up 0.7% at 6,287.31 and Frankfurt’s DAX added 0.5% to 12,379.94. The CAC 40 in France advanced 0.5% to 4,979.13. The Shanghai Composite Index lost 0.1% to 2,929.62 and the Nikkei 225 in Tokyo retreated 0.6% to 22,455.76. The Hang Seng in Hong Kong lost 0.3% to 24,274.01.
In Asia, the Shanghai Composite Index edged 0.1% higher to 2,935.87 while the Hang Seng in Hong Kong added 0.6% to 24,481.41. In Seoul, the Kospi shed 0.3% to 2,131.12 and India’s Sensex opened down 0.4% at 33,474.57.
The Nikkei 225 in Tokyo shed 0.6% to 22,455.76 after the government reported May exports fell 28.3% from a year earlier in their biggest decline since the 2008 global crisis. Sydney’s S&P-ASX 200 gained 0.4% to 5,967.60. New Zealand advanced while Singapore declined.
In Seoul, the Kospi closed up 0.1% at 2,141.05. India’s Sensex lost 0.4% to 33,453.82. Adding to the mixed picture, Japan’s government reported May exports fell 28.3% from a year earlier in their biggest decline since the 2008 global crisis.
Sydney’s S&P-ASX 200 gained 0.8% to 5,991.80. New Zealand and Southeast Asia markets advanced. May might mark the low point for Japanese exporters as their major foreign customers begin to emerge from lockdowns, said Marcel Thieliant of Capital Economics in a report.
Also Wednesday, Singapore reported May exports fell 25% from a year earlier.Also Wednesday, Singapore reported May exports fell 25% from a year earlier.
Financial markets have been underpinned by promises from the Fed and other central banks to inject more money into economies through bond purchases and other steps.Financial markets have been underpinned by promises from the Fed and other central banks to inject more money into economies through bond purchases and other steps.
However, analysts are skeptical about the U.S. stock market’s run since it began climbing after hitting a bottom in late March, down 34% from its record. However, many analysts are skeptical about the U.S. stock market’s run since it began climbing after hitting a bottom in late March, down 34% from its record.
Investors have been pushing up shares of companies that would benefit from a reopening economy.Investors have been pushing up shares of companies that would benefit from a reopening economy.
In energy markets, benchmark U.S. crude oil for July delivery lost 29 cents to $38.11 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.26 on Tuesday to settle at $38.38. Brent crude, the benchmark for international prices, shed 16 cents to $40,80 per barrel in London. It rose $1.24 the previous session to $40.96 a barrel. On Tuesday, Nordstrom jumped 12.9% for one of the biggest gains in the S&P 500, leading a group of retailers that stand to benefit if shoppers return to stores.
The dollar gained to 107.39 yen from Tuesday’s 107.33 yen. The euro declined to $1.1230 from $1.1266. Benchmark U.S. crude oil for July delivery lost 90 cents to $37.48 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.26 on Tuesday to settle at $38.38. Brent crude, the benchmark for international prices, shed 67 cents to $40.29 per barrel in London. It rose $1.24 the previous session to $40.96 a barrel.
The dollar declined to 107.24 yen from Tuesday’s 107.33 yen. The euro gained to $1.1274 from $1.1266.
Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.