Path 27

Hope for US-China deal pushes stocks higher

Path 27

BANGKOK (AP) — Shares have declined in most Asian markets, tracking an overnight sell-off on Wall Street.

But stocks in Shanghai and Shenzhen advanced early Tuesday after the government set an ambitious target for growth this year that implies strong government support for the economy.

The Shanghai Composite index rose 0.1 percent to 3,031.00, while the benchmark in Shenzhen, a smaller, more domestic-oriented market jumped 0.8 percent to 1,685.17.

Chinese Premier Li Keqiang told the annual session of the country’s rubber-stamp parliament that the government was setting a growth target in a range of 6 to 6.5 percent. That shows official determination to shore up the cooling economy and prevent politically hazardous job losses and is slightly below last year’s 6.6 percent growth, a three-decade low.

Li promised higher spending on technology development. Beijing is also aiming to raise military spending by 7.5 percent.

Trending:
Wisconsin Election Official Says Zuckerberg-Funded Group Seized Control of 2020 Election

Elsewhere in Asia the focus was mainly on an absence of news of fresh progress in China-U.S. trade talks.

Japan’s Nikkei 225 index lost 0.5 percent to 21,714.70 and the Hang Seng in Hong Kong edged 0.1 percent lower to 28,932.74. South Korea’s Kospi dropped 0.5 percent to 2,178.75.

Australia’s S&P ASX 200 fell 0.3 percent after the central bank opted to keep its key policy rate at 1.5 percent. Shares fell in Taiwan and most of Southeast Asia.

The upward momentum from Asia on Monday faded as investors grew impatient for more details on reports that the U.S. and China are moving closer to a deal to resolve their costly trade dispute.

The world’s two largest economies have pulled back from an immediate escalation of their damaging trade war, with President Donald Trump postponing a deadline for raising tariffs on more Chinese goods, citing progress in a series of talks. Media reports say the nations could strike a deal this month.

Investors have been hoping for a resolution in the long-running trade dispute between the world’s biggest economies, which centers on China’s technological ambitions. Washington claims Beijing is stealing technology and forcing companies to turn over technology in order to do business.

“The devil is still in the details and those details are still pretty sparse at this point,” said David Lefkowitz, senior Americas equity strategist at UBS Global Wealth Management. “When tariffs might be removed is definitely a key question, and also there’s still some uncertainty about whether or not a deal will be consummated.”

The sell-off Monday centered mainly on health-related and technology shares that have made the most gains recently.

The S&P 500 index dropped 0.4 percent to 2,792.81. The index, a benchmark for many mutual funds, is still up 11.4 percent so far this year.

Related:
Hero Sacrifices Life Confronting Shooter Who Ambushed and Killed Police Officer

The Dow Jones Industrial Average fell 0.8 percent, to 25,819.65, while the Nasdaq composite lost 0.2 percent to 7,577.57. The Russell 2000 index of smaller companies gave up 14.20 points, or 0.9 percent, to 1,575.44.

Major indexes in Europe finished mostly higher.

ENERGY: U.S. crude lost 30 cents to $56.29 per barrel in electronic trading on the New York Mercantile Exchange. It rose 1.4 percent Monday to settle at $56.59 a barrel in New York. Brent crude, used to price international oils, fell 28 cents to $65.39 a barrel.

CURRENCIES: The dollar rose to 111.91 yen from 111.74 yen on Monday. The euro weakened to $1.1327 from $1.1341.

___

AP Business Writers Damien J. Troise and Alex Veiga contributed.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →



loading

We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
Path 27
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




loading

Conversation