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Global shares up, China trading closed for national holiday

TOKYO (AP) – Global shares rose yesterday amid mixed signs for investors such as rising energy prices and COVID-19 restrictions easing in China.

European shares edged up in early trading, with France’s CAC 40 gaining 0.3 per cent to 6,517.73. Germany’s DAX added 0.3 per cent to 14,528.45, while trading was closed in Britain for a national holiday.

Trading also was closed in China for the Dragon Boat Festival, a national holiday. Benchmarks in the rest of Asia edged higher, cheered by a rally overnight on Wall Street.

The future for the Dow industrials was down 0.2 per cent at 33,161.00. The S&P 500 future fell 0.3 per cent to 4,164.75.

Market players are closely watching for United States (US) non-farm employment data later in the day, and a slew of economic data on Japan next week. An OPEC meeting Thursday where oil-producing nations decided to boost some output failed to steady energy prices significantly.

A currency trader reads documents at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea. PHOTO: AP

“To say the OPEC meeting outcome disappointed expectations would be an understatement,” said Stephen Innes, managing partner at SPI Asset Management.

Japan and the US signed a revision on the “beef safeguard” mechanism under the US-Japan Trade Agreement, which will help American beef producers meet Japan’s growing demand for high-quality beef. The deal will reduce the chances Japan’s safeguard duties would be imposed on US beef, both sides said. That happened in early 2021.

“Together, the United States and Japan are demonstrating our commitment to working together on shared priorities to achieve concrete, economically meaningful results for our people,” said US Trade Representative Katherine Tai.

Japan’s benchmark Nikkei 225 jumped 1.3 per cent to finish at 27,761.57. Australia’s S&P/ASX 200 added 0.9 per cent to 7,238.80, while South Korea’s Kospi gained 0.4 per cent to 2,670.65.

Trading has been choppy in recent days as investors remain worried about inflation and the interest rate increases the US Federal Reserve is using to fight it. Wall Street is concerned that the Fed could slow economic growth too much and potentially send the economy into a recession.

Meanwhile high inflation is eating into corporate profits, while the war in Ukraine and COVID-19 restrictions in China have also weighed on markets.

Bond yields were relatively stable. The yield on the 10-year Treasury, which helps set interest rates on mortgages and other loans, fell to 2.91 per cent from 2.93 per cent from late Wednesday.

In energy trading, benchmark US crude dipped 59 cents to USD116.28 a barrel. Brent crude, the international standard, fell 53 cents to USD117.08 a barrel.

In currency trading, the US dollar edged up to 129.97 Japanese yen from 129.87 yen. The euro cost USD1.0763, up from USD1.0752.