World shares mostly higher after advance on Wall Street

BANGKOK (AP) — World shares rose yesterday after a broad advance on Wall Street as corporate earnings suggested the economy was on the mend from the pandemic.

Benchmarks rose in Paris, London, Tokyo and Hong Kong but fell in Shanghai. United States (US) futures edged lower.

Germany’s DAX climbed 0.5 per cent to 15,265.40 and the CAC 40 in Paris picked up 0.8 per cent to 6,258.27. Britain’s FTSE 100 rose 0.3 per cent to 6,917.44. The future for the S&P 500 fell less than 0.1 per cent, as did the future contract for the Dow industrials.

In Asian trading, Japan’s Nikkei 225 index added 2.4 per cent to 29,188.17. Toshiba Corp jumped 3.5 per cent amid reports that Bain Capital may be considering an acquisition proposal as an earlier takeover bid by CVC Capital appears to have stalled.

Hong Kong’s Hang Seng rose 0.5 per cent to 28,755.34. In Seoul, the Kospi picked up 0.2 per cent to 3,177.52. Sydney’s S&P/ASX 200 jumped 0.8 per cent to 7,055.40. The Shanghai Composite index fell 0.2 per cent to 3,465.11.

Currency traders talk near screens at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea. PHOTO: AP

On Wednesday, the S&P 500 rose 0.9 per cent, snapping a two-day slide, to close at 4,173.42. The Dow Jones Industrial Average gained 0.9 per cent to 34,137.31. Both the S&P 500 and Dow hit all-time highs last Friday. The technology-heavy Nasdaq added 1.2 per cent to 13,950.22.

The Russell 2000 index of smaller company stocks, which has been outpacing the broader market all year, led the way higher, climbing 2.3 per cent, to 2,239.63.

Most of the companies in the benchmark index rose, with technology, financial, and healthcare stocks accounting for a big share of the gains. Tesla, Amazon and other companies that rely directly on consumer spending also rose. Communication and utilities stocks fell.

Investors are weighing company earnings reports while keeping an eye on bond yields, which eased lower. The yield on the 10-year Treasury slipped to 1.54 per cent from 1.56 per cent.

“It seems like traders are taking every retracement in the stock market as an opportunity to jump back in or double down on their riskier bets, and this is pushing the European and the US stocks higher,” Naeem Aslam of avatrade.com said in a commentary.

Much of the market’s focus over the next two weeks will be on individual companies and the outcome of their quarterly results. About 80 members of the S&P 500 are due to report results this week, as well as one out of every three members of the Dow. On average, analysts expect quarterly profits across the S&P 500 to climb 24 per cent from a year earlier, according to FactSet.