World Stocks Rebound on Monday 06/01 05:53
Hong Kong's stock market surged more than 3% and other global markets also
gained Monday after President Donald Trump avoided reigniting a trade war with
China amid tension over Hong Kong and the coronavirus pandemic.
BEIJING (AP) -- Hong Kong's stock market surged more than 3% and other
global markets also gained Monday after President Donald Trump avoided
reigniting a trade war with China amid tension over Hong Kong and the
London and Paris opened higher. Shanghai gained 2.2% and Tokyo was up nearly
1%. U.S. futures declined.
Global markets sank Friday as investors waited for Trump's response to
Beijing's security law on Hong Kong. In the end, Trump ended Hong Kong's
special trade status and suspended visas of some Chinese students but avoided
pulling out of a truce in a tariff war with Beijing that weighs on global
"Markets may draw hollow consolation that the U.S. is treading carefully,"
said Mizuho Bank in a report. However, it warned, relief may be "set to
In early trading, the FTSE 100 in London added 0.8% to 6,125.05 and the CAC
40 in France advanced 1% to 4,742.58. German markets were closed for a holiday.
On Wall Street, futures for the benchmark S&P 500 index and the Dow Jones
Industrial Average were off 0.2%.
On Friday, the S&P 500 ended the week up 3% and the Dow fell 0.1%. The
Nasdaq composite, heavily weighted with technology stocks, climbed 1.3%.
In Asia, Hong Kong's Hang Seng index jumped 3.4% to 23,732.52. The Shanghai
Composite Index rose to 2,915.43 and the Nikkei 225 in Tokyo added 0.8% to
A monthly gauge of Chinese manufacturing issued by a business magazine,
Caixin, edged up to a four-month high, but new export orders fell from an
already low level in a sign of weak global demand.
Also Monday, South Korea reported exports fell 23.7% in May from a year
In Seoul, the Kospi in Seoul added 1.7% to 2,065.08. Australia's S&P-ASX 200
was 1.1% higher at 5,819.20 and India's Sensex added 3.2% to 33,474.98.
Singapore gained 1.9% and Bangkok rose 0.6%.
U.S.-Chinese tension has weighed on investor optimism about the global
economy's recovery from its deepest slump since the 1930s.
As China and some European countries revive economic activity, stock markets
have been regaining much of this year's losses despite rising numbers of virus
cases in the United States, Brazil and some other countries.
Before the virus outbreak, the global economy already was under pressure
from the U.S.-Chinese dispute over Beijing's technology ambitions and trade
The world's two biggest traders had raised tariffs on billions of dollars of
each other's goods. They signed a truce in January but Trump has added to
market jitters by threatening to pull out if China doesn't buy more American
On Friday, Trump said Washington would begin eliminating agreements that
gave Hong Kong privileges that China lacked, including exemption from some
That followed the ceremonial Chinese legislature's endorsement of a security
law for Hong Kong that pro-democracy advocates say undermines the autonomy
promised to the former British colony.
It is unclear how the decision might affect U.S. companies in Hong Kong or
the territory's status as a finance and business center. Business groups say
the uncertainty might hurt its appeal to foreign investors.
In energy markets, benchmark U.S. crude lost 19 cents to $35.30 per barrel
in electronic trading on the New York Mercantile Exchange. The contract gained
$1.78 on Friday to settle at $35.49. Brent crude, used to price international
oils, gained 2 cents to $37.86 per barrel in London.
The dollar declined to 107.45 yen from Friday's 107.81. The euro retreated
to $1.1139 from $1.1165.