AP – World shares were mixed yesterday while oil prices pushed higher.
After a day of strong gains in Asia, shares fell in Europe. The CAC 40 in Paris edged 0.1 per cent lower to 7,530.43. Germany’s DAX lost 0.3 per cent to 19,059.46 and the FTSE 100 in London was down 0.1 per cent at 8,275.18.
The futures for the S&P 500 and the Dow Jones Industrial Average were down 0.4 per cent.
Asian shares logged strong gains after a surprisingly strong United States (US) jobs report raised optimism about the economy, sparking a rally on Friday on Wall Street.
Japan’s Nikkei 225 index gained 1.8 per cent to 39,332.74 after the yen sank against the US dollar. The Japanese currency has bounced on speculation over the central bank’s plans for interest rates since Prime Minister Shigeru Ishiba took office last week. Lower interest rates tend to boost prices of shares and other asset, and both Ishiba and the central bank governor suggested no hikes were likely soon.
After gaining briefly against the dollar, the yen fell back late last week. Early yesterday, the dollar was trading at JPY148.34, down from JPY148.72 late Friday. The euro rose to USD1.0974 from USD1.0967.
Elsewhere in Asia, Hong Kong’s Hang Seng index rose 1.6 per cent to 23,099.78, and the Kospi in Seoul surged 1.6 per cent to 2,610.38.
Taiwan’s Taiex gained 1.8 per cent.
Mainland Chinese markets reopen from a weeklong holiday today, and the government said it plans to explain details of plans for economic stimulus at a morning news conference in Beijing. Before the October 1 National Day holiday began, announcements of policies aimed at reviving the ailing property market pushed share benchmarks sharply higher and this week could bring more volatility.
“More fiscal stimulus to stabilise the property market and restructure local government debts, and structural reforms to address the over-capacity and deflation issues are needed to turn around the economy,” B of A Securities said in a research note, pointing to continued declines in home sales, housing prices and credit growth.
On Friday, the S&P 500 climbed 0.9 per cent and got close to its all-time high set yesterday.
