Global stocks rise after Trump tariff extension

February 25, 2019 - 7:20 am

BEIJING (AP) — World stocks rose Monday, with China's main index jumping to an eight-month high, after U.S. President Donald Trump agreed to postpone a tariff hike on Chinese goods.

London's FTSE 100 rose 0.3 percent in midday trading to 7,181, while Germany's DAX also gained 0.3 percent, to 11,494. The CAC 40 in Paris rose 0.4 percent to 5,236.

Wall Street was set for gains, with the future for the Standard & Poor's 500 index up 0.4 percent, while the same measure for the Dow Jones Industrial Average advanced 0.5 percent.

The Shanghai Composite Index rose 5.6 percent to 2,961.28, its highest close since June 15, and Trump said the negotiations in Washington made "substantial progress."

Trump said he would postpone a March 1 deadline for 10 percent punitive tariffs on $200 billion of Chinese imports to rise to 25 percent but set no new date.

The world's two biggest economies have raised tariffs on billions of dollars of each other's goods in the fight over U.S. complaints Beijing steals or pressures companies to hand over technology.

Washington wants China to roll back plans for government-led creation of global competitors in robotics and other technologies. Europe, Japan and other trading partners echo U.S. complaints those violate Beijing's free-trade obligations.

The fight threatens to disrupt global trade and weigh on economic growth that shows signs of faltering. Investors also are watching February manufacturing indicators due out this week for signs of further deceleration in global activity.

Trump's announcement should reassure financial markets, but stock gains outside of China might be limited because prices already had risen in expectation of such a move, analysts said.

"The latest news may not offer a significant boost to start the week," Tai Hui of J.P. Morgan Asset Management said in a report. "Nonetheless, it helps to underpin positive investor sentiment."

Tokyo's Nikkei 225 advanced 0.5 percent to 21,528.23 while Hong Kong's Hang Seng added 0.5 percent to 28,959.30.

Seoul's Kospi gained 2 points to 2,232.56. India's Sensex advanced 0.5 percent to 35,950.50 and Sydney's S&P-ASX 200 rose 0.3 percent to 6,186.30. New Zealand, Taiwan and Southeast Asia advanced.

ENERGY: Benchmark U.S. crude gained 23 cents to $57.49 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 30 cents to $57.26 on Friday. Brent crude, used to price international oils, picked up 8 cents to $67.20 per barrel in London. It added 5 cents the previous session to $67.12.

CURRENCY: The dollar moved slightly higher to 110.75 yen from Friday's 110.68 yen. The euro advanced to $1.1365 from $1.1333.


Matt Ott in Madrid contributed to this report.

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