Global stocks mostly up after Wall Street rally | Taiwan News

TOKYO (AP) – Global stocks were mostly higher on Tuesday despite concerns over the rising number of coronavirus cases.

The French CAC 40 added 0.7% early in the session to 7,266.59, while the German DAX edged up 0.3% to 16,064.91. The UK FTSE 100 gained 1.2% to 7,475.46. The Dow industrials futures contract was 0.2% higher and the S&P 500 contract gained 0.2% as well.

Japan’s benchmark Nikkei 225 jumped 1.8% to 29,301.79 on Tokyo’s first trading day in 2022. Shares also rose in Australia, South Korea and Hong Kong, but rose slightly lowered in Shanghai.

Toyota Motor Corp. gained 6.1%, while Sony Corp. increased by 3.4%.

Finance Minister Shunichi Suzuki and other dignitaries rang a bell on the Tokyo Stock Exchange to announce the opening of trade. At the Osaka Small Stock Exchange in western Japan, women carried on the tradition of attending the opening ceremony of the year in colorful kimono.

Ailing Chinese developer Evergrande has announced that it has been ordered to demolish a 39-building complex in the southern province of Hainan. Shares of the company were suspended from trading on Monday but resumed on Tuesday, gaining 1.9%.

Evergrande is grappling with $ 310 billion in debt and the order to demolish the complex has been another blow to its finances.

Evergrande Group gave no explanation, but reports indicated that the government in Danzhou, a city in the southern island province of Hainan, discovered that it was poorly built and violated the town planning law.

Stricter official restrictions on the use of borrowed money by the Chinese real estate industry have raised fears of possible defaults and a financial crisis. Chinese regulators have tried to reassure investors that any potential impact on financial markets can be contained.

Hong Kong’s Hang Seng was little changed, rising less than 0.1% to 23,289.84. The Shanghai Composite Index edged down 0.2% to 3,632.33.

The Australian S & P / ASX 200 jumped nearly 2.0% to 7,589.80. South Korean Kospi gained less than a point to 2,989.24.

Asia has had fewer coronavirus infections and deaths than the United States and parts of Europe. But concerns are growing about an inevitable increase with reported detections of faster spreading omicron.

“While sentiment may try to take advantage of Wall Street optimism, market participants have generally been more cautious in taking more risk in the region,” said Yeap Jun Rong, market strategist at IG in Singapore.

On Monday, the S&P 500 rose 0.6% to 4,796.56 and the Dow ended up 0.7% to 36,585.06. Both indices eclipsed the records they set last Wednesday. The Nasdaq composite rose 1.2% to 15,832.80.

Small business shares also rose. The Russell 2000 gained 1.2% to 2,272.56.

Recent strong gains suggest investors remain bullish on stocks, despite the recent spike in COVID-19 cases due to the rapidly spreading omicron variant of the virus and expectations that the US Federal Reserve will start raising rates. interest this year to fight rising inflation.

Investors have several key pieces of economic data to look forward to in the first week of the new year, including the Labor Department’s employment report on Friday. The Institute for Supply Management will give investors an update on the manufacturing sector on Tuesday and the service sector on Thursday.

In energy trading, benchmark US crude gained 32 cents to $ 76.40 a barrel in electronic trading on the New York Mercantile Exchange. It gained 87 cents to $ 76.08 a barrel on Monday. Brent crude, the international standard, rose 30 cents to $ 79.28 a barrel.

In currency trading, the US dollar rose from 115.31 yen to 115.84 Japanese yen. The euro cost $ 1.1298, compared to $ 1.1296.

Janice J. Kostka