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Global Shares Rise on China Comments 05/02 04:51
Global markets advanced Friday after China's Commerce Ministry said Beijing
is evaluating overtures from the U.S. regarding President Donald Trump's
tariffs.
HONG KONG (AP) -- Global markets advanced Friday after China's Commerce
Ministry said Beijing is evaluating overtures from the U.S. regarding President
Donald Trump's tariffs.
The future for the S&P 500 gained 0.5% while that for the Dow Jones
Industrial Average added 0.6%.
Germany's DAX advanced 1.5% to 22,831.50 and the CAC 40 in Paris climbed
1.3% to 7,695.70.
British FTSE 100 was 0.7% higher at 8,558.56.
In Asian trading, Hong Kong's Hang Seng surged 1.7% to 22,504.68 while
markets in Shanghai were closed for a public holiday. Taiwan's benchmark jumped
2.7%.
An unnamed Chinese Commerce Ministry spokesperson was cited as saying that
Beijing had taken note of various statements by senior U.S. officials
indicating a willingness to negotiate over tariffs.
"At the same time, the U.S. has recently taken the initiative to convey
information to the Chinese side on a number of occasions through relevant
parties, hoping to talk with the Chinese side. In this regard, the Chinese side
is making an assessment," it said.
Tokyo's Nikkei 225 picked up 1% to 36,830.69.
Japanese Finance Minister Katsunobu Kato drew attention by mentioning that
the country's more than $1.1 trillion in U.S. Treasury bonds could potentially
be a "card on the table" in negotiations with Washington over Trump's steep
tariffs on autos and other imports.
Elsewhere in Asia, South Korea's Kospi rose 0.1% to 2,558.84 and Australia's
S&P/ASX 200 added 1.1%, closing at 8,238.00.
On Thursday, Microsoft and Meta Platforms led Wall Street higher after they
reported profits for the start of the year that were even bigger than analysts
expected.
The S&P 500 rose 0.6% for an eighth straight gain, its longest winning
streak since August.
The Dow Jones Industrial Average added 0.2% and the Nasdaq composite climbed
1.5%.
Microsoft rallied 7.6% after the software giant said strength in its cloud
computing and artificial intelligence businesses drove its overall revenue up
13% from a year earlier.
Meta, the parent company of Facebook and Instagram, also topped analysts'
targets for revenue and profit in the latest quarter. It said AI tools helped
boost its advertising revenue, and its stock climbed 4.2%.
Plenty of uncertainty remains about whether President Donald Trump's trade
war will force the economy into a recession.
General Motors slipped 0.4% after it cut its forecast for profit in 2025,
for example. It said it's assuming it will feel a hit of $4 billion to $5
billion because of tariffs, and it expects to offset at least 30% of it.
McDonald's fell 1.9% after reporting weaker revenue for the latest quarter
than analysts expected, even though its profit was slightly above forecasts.
McDonald's joined Chipotle and other restaurant chains that have seen
customers grow cautious about the economy and inflation.
Consumer surveys show pessimism is shooting higher about where the economy
heading. On Thursday, a couple reports about the economy came in mixed,
following up on several recent updates that suggested it's weakening.
The first of the reports said more U.S. workers filed for unemployment
benefits last week than economists had forecast, setting the stage for a more
comprehensive report on the job market arriving Friday.
The fear on Wall Street is for a possible worst-case scenario called
"stagflation," where the economy stagnates yet inflation remains high. The
Federal Reserve has no good tools to fix both such problems at the same time.
If the Fed were to try to help one problem by adjusting interest rates, it
would likely make the other worse.
Hopes that Trump may eventually roll back some of his tariffs after reaching
trade deals with other countries has helped to support markets this week.
In other dealings early Friday, U.S. benchmark crude oil lost 26 cents to
$58.98 per barrel. Brent crude, the international standard, shed 24 cents to
$61.89 per barrel.
The U.S. dollar slid to 144.88 Japanese yen from 145.40 yen. The euro rose
to $1.1335 from $1.1292.
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