Global stocks rose Monday despite U.S.-Chinese trade tension following Wall Street gains on unexpectedly strong U.S. employment data.
In early trading, Germany’s DAX rose 0.8% to 12,446.46 and France’s CAC 40 added 0.4% to 5,297.83. London’s FTSE 100 advanced 0.3%.
On Friday, the CAC 40 rose 0.4% percent and the FTSE 100 gained 0.3% while the DAX lost 0.1%. On Wall Street, futures for the Dow Jones Industrial average and the Standard & Poor’s 500 index rose 0.5%.
The Shanghai Composite Index rose 0.6 % to 3,326.70 and Tokyo’s Nikkei 225 added 1.6% to 21,824.03. Hong Kong’s Hang Seng jumped 1.9% to 31,585.00 and Sydney’s S&P-ASX 200 gained 0.6% to 5,996.10. Seoul’s Kospi gained 1% to 2,484.12 and India’s Sensex was up 1.3% at 33,737.07.
Benchmarks in New Zealand, Taiwan and Southeast Asia also rose.
Stocks gained after U.S. Labor Department data showed job creation in February stronger than forecast, while wage increases were below expectations. That helped to dampen inflation concerns that triggered the market’s swoon. The S&P climbed 1.7% and the Dow and Nasdaq composite gained 1.8%.
China’s Commerce Minister said Beijing wants to resolve disputes with Washington through negotiations but vowed to defend Chinese interests. Zhong Shan gave no indication Beijing planned to make good on earlier threats to retaliate following President Trump’s decision to raise import duties on steel and aluminum.
“U.S. employment data hit a sweet spot on Friday night. Jobs surged but wage growth moderated, indicating an ideal higher growth, lower inflation scenario,” said Michael McCarthy of CMC Markets in a report. “Any initial enthusiasm may ease as investors digest further Trade War rhetoric.”
U.S. officials said there will be no more conditions imposed on North Korea before a possible meeting of the two nations’ leaders beyond the North’s promise not to resume nuclear testing and missile flights or publicly criticize U.S.-South Korean military exercises.
President Trump announced last week that he had agreed to meet North Korean leader Kim Jong Un by May. Treasury Secretary Steven Mnuchin said the President Would Trump “see if he can cut a deal” over the North’s nuclear program.
Benchmark U.S. crude lost 19 cents to $61.84 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $1.92 on Friday to close at $62.04. Brent crude, used to price international oils, shed 22 cents to $65.27 per barrel in London. It surged $1.88 the previous session to $65.49.
The dollar weakened to 106.54 yen from Friday’s 106.81 yen. The euro rose to $1.2330 from $1.2306.
An Associated Press publication. Further editing by Manyika Review