TOKYO (AP) – Global shares trade mixed yesterday, with losses of more than two per cent in Chinese benchmarks, as Asia’s main stock market in Tokyo stayed closed for New Year holidays.
France’s CAC 40 edged up 0.2 per cent to 7,395.11, while Germany’s DAX rose 0.6 per cent to 20,020.05. Britain’s FTSE 100 gained 0.2 per cent to 8,192.31. United States (US) shares were set to drift higher with Dow futures up 0.5 per cent at 43,096.00. S&P 500 futures rose rose 0.6 per cent to 5,973.25. Oil prices gained.
Investors remain cautious over what US President-elect Donald Trump might do once he takes office, including raising tariffs on imports from other countries.
The Shanghai Composite index dropped 2.7 per cent to 3,262.56 and the Hang Seng, in Hong Kong, fell 2.2 per cent to 19,623.32.
Upbeat talk by Chinese leader Xi Jinping in a New Year’s address did little to raise optimism among market players who are hoping for more aggressive action to support the economy and boost share prices.
“We have proactively responded to the impacts of the changing environment at home and abroad.
“We have adopted a full range of policies to make solid gains in pursuing high-quality development. China’s economy has rebounded and is on an upward trajectory,” Xi said in a New Year message according to the official Xinhua News Agency.
Elsewhere in the Asia-Pacific, Australia’s S&P/ASX 200 rose 0.5 per cent to 8,201.20 and South Korea’s Kospi was flat at 2,398.94.
On Wednesday, markets were closed on Wall Street for the New Year’s Day holiday, as were nearly all other world markets.
Investors will get an updated snapshot of US construction spending for November yesterday, while US manufacturing numbers for December will be released today.
US stock indexes closed mostly lower on Tuesday as the market delivered a downbeat finish on the final day of another milestone-shattering year on Wall Street.
The US markets’ stellar run was driven by a growing economy, solid consumer spending and a strong jobs market.
Skyrocketing prices for companies in the artificial intelligence business, such as Nvidia and Super Micro Computer, helped lift the market to new heights.
After three interest rate cuts in 2024, the Fed has signaled a more cautious approach heading into 2025 with inflation remaining sticky as the country prepares for Trump’s transition into the White House.
Trump’s threats to hike tariffs on imported goods have raised anxiety that inflation could be reignited as companies pass along the cost of tariffs.
In energy trading, benchmark US crude oil rose 21 cents to USD71.93 a barrel.
Brent crude, the international standard, added 21 cents to USD74.85 a barrel.
The US dollar slipped to JPY156.68 from JPY157.24. The euro cost USD1.0362, up from USD1.0359.
