February 26, 2021

World Markets Open Higher After U.S. Rally

SHANGHAI (AP) — Asian markets were mostly higher Tuesday as investors took heart from a late rally on Wall Street, but China shares fell on speculation over possible fresh measures to counter inflation.

Benchmark oil rose to near $89 a barrel while the dollar slipped against the yen and the euro.

Japan’s benchmark Nikkei 225 index gained 0.5 percent to 8,577.45 by midday. Suzuki Motor Corp. jumped 3.3 percent, a day after the company announced it was ending its alliance with Volkswagen AG.

Australia’s SP/ASX200 index was up 0.7 percent to 4,152.2, with resource-related companies leading the gains. Global miners Rio Tinto climbed 1 percent and BHP Billiton rose 2.5 percent.

Benchmarks in New Zealand, Singapore and Indonesia also rose. Taiwan and Malaysia were lower.

Unconfirmed reports that China is considering investing in government bonds of Italy — another potential debt domino in the eurozone — provided a glimmer of hope, helping along a late technical rebound on Wall Street.

There was no immediate response from China’s government investment arm to the reports, which cited Italian government officials.

Mainland Chinese investors were preoccupied with domestic concerns over further monetary tightening to counter inflation, which is hovering near three-year highs.

The benchmark Shanghai Composite Index down 1.4 percent to 2,462.10. The smaller Shenzhen Component Index was 2 percent lower at 1,094.03.

“Apart from worries over Europe, a rumor that the government will issue 20 billion yuan ($3.1 billion) in bills to tighten liquidity is weighing on the market,” said Peng Yunliang, an analyst based in Shanghai.

Shares in economic in non-ferrous metals, home appliances and engineering companies weakened.

Guangdong Orient Zirconic Ind Sci Tech lost 5.3 percent while Jinduicheng Molybdenum Co. shed 4 percent. Appliance maker Qingdao Haier Co. slipped 2.1 percent.

Markets in Hong Kong and South Korea were closed for public holidays.

The Dow Jones Industrial index ended Monday up nearly 69 points after a late afternoon rally pushed the stock market higher. The Dow closed at 11,061.12, with all of the gains coming in the last 10 minutes of trading.

The SP 500 index rose 0.7 percent to close at 1,162.27. The tech-heavy Nasdaq composite index rose 1.1 percent to 2,495.09.

Markets in Europe and Asia plunged Monday as investors worried that Greece could be edging closer to default.

Greece is being kept solvent by a euro110 billion ($150 billion) international rescue loan package, while an agreement in July to double the bailout size has yet to be implemented. The cash lifeline, without which the country would go broke in a few weeks, is conditional on Athens meeting its ambitious savings targets.

The euro rose to $1.3685 from $1.3666 in New York late Monday. Earlier that day, the European common currency hit $1.3495, a seven-month low. The euro started the month around $1.43. The euro also hit a 10-year low against the Japanese yen.

The dollar dipped to 77.01 yen from 77.25 yen.

Benchmark oil for October delivery was up 79 cents to $88.98 in electronic trading on the New York Mercantile Exchange. Crude fell 52 cents to end at $112.25 on Monday.

In London, Brent crude for October delivery was up 62 cents at $110.81 on the ICE Futures exchange.

Article source: http://www.nytimes.com/aponline/2011/09/12/world/asia/AP-World-Markets.html?partner=rss&emc=rss

Speak Your Mind