Monday, July 4, 2022

Survey shows Asian stocks rally, Chinese services revived

BEIJING ( Associated Press) – Major Asian stock markets rose on Monday after Wall Street slid and a survey showed Chinese service activity declined in May as anti-virus controls on Shanghai and other major cities were lifted. was.

Benchmarks rose in Shanghai, Tokyo and Hong Kong.

On Wall Street, the benchmark S&P 500 index lost 1.6% on Friday amid concerns about higher interest rates and a potential economic slowdown and job losses.

A survey showed that activity in Chinese retailing and other service industries declined in May, but at a slower pace than in the previous month. The ruling Communist Party is allowing shops, factories and other businesses to reopen in Shanghai after a two-month shutdown to fight the virus outbreak and also easing restrictions in the capital Beijing.

“Further easing of virus restrictions in Beijing could bring some pockets of optimism,” IG’s Yep Jun Rong said in a report.

The Shanghai Composite Index for services rose 0.6% to 3,215.45, trade news magazine Caixin said, adding that the monthly purchasing managers’ index for services rose from April’s 36.2 to 41.4 on a 100-point scale, with numbers below 50 showing contracting activity. .

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The Hang Seng in Hong Kong rose 1.1% to 21,312.36 and the Nikkei 225 in Tokyo rose 0.3% to 27,844.26. Korean markets remained closed for the holiday.

Sydney’s S&P-ASX 200 closed 0.4% down at 7,210.90, while New Zealand markets remained closed for the holiday. Singapore and Jakarta declined.

On Wall Street, the S&P 500 fell to 4,108.54 for its eighth weekly loss in the past nine weeks.

The Dow Jones Industrial Average fell 1% to 32,899.70. The Nasdaq fell 2.5% to close at 12,012.73.

Government data shows US employers added 390,000 jobs in May, beating expectations of 322,500.

Investors are uneasy about the prospect that Federal Reserve interest rates aimed at cooling inflation at four-decade highs could propel the US economy into recession.

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The same government report shows wages in May were slightly lower than forecast, which could ease future pressure for price increases. This will reduce the pressure on the Fed to hike rates further.

Four out of five stocks in the S&P 500 declined. The biggest fall was in tech stocks.

Tesla dropped 9.2% after US safety regulators said more than 750 owners have complained of cars suddenly stopping on roadways for no apparent reason while working on its partially automated driving system.

Benchmark US crude rose 86 cents to $119.73 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2 to $118.87 on Friday. Brent crude, the price base for international oil trade, rose 86 cents to $120.58 a barrel in London. It closed the previous session higher by $2.11 at $119.72.

The dollar fell to 130.65 yen from Friday’s 130.85 yen. The euro rose from $1.0720 to $1.0724.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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