TOKYO (AP) — Global shares mostly rose Wednesday after China and the U.S. said they had agreed on a framework for following up on the trade truce reached last month in Geneva.
France’s CAC 40 added 0.3% in early trading to 7,830.85, while Germany’s DAX edged up 0.1% to 24,063.19. Britain’s FTSE 100 rose nearly 0.2% to 8,867.82. U.S. shares were set to drift lower with Dow futures down 0.2% to 42,826.00. S&P 500 futures declined nearly 0.2% to 6,035.50. Oil prices edged higher.
In Asia, Japan’s benchmark Nikkei 225 surged 0.6% to finish at 38,421.19. Data from the Bank of Japan showed wholesale inflation slowed in May, meaning there might be less pressure for the central bank to raise interest rates in its next policy board meeting.
Hong Kong’s Hang Seng Index gained 0.8% to 24,356.67, while the Shanghai Composite rose 0.5% to 3,402.32.
Australia’s S&P/ASX 200 lost earlier gains and were little changed, up less than 0.1% to 8,592.10.
South Korea’s Kospi added 1.2% to 2,907.04 as relief set in about Trump’s trade policies. Optimism is also growing about the policies of Korean President Lee Jae-myung, who took office last week. He has promised to encourage growth in the local stock market.
Stocks have soared higher since dropping roughly 20% below their record two months ago, when President Donald Trump shocked financial markets with his announcement of stiff tariffs that raised worries about a possible recession. Much of the rally has been due to hopes that Trump would lower his tariffs after reaching trade deals with countries around the world.
Analysts said that after two days of discussion in London, the late-night agreement reached appeared to be a consensus on what was already agreed upon before. Even so, Trump’s approval is still needed.
“So what did 48 hours of talks actually produce? Apparently, a reaffirmation to eventually do what they had already said they would do. If markets were expecting substance, they got process instead,” said Stephen Innes, managing partner at SPI Asset Management.
U.S. Secretary of Commerce Howard Lutnick said Tuesday evening in London that talks with China were going “really, really well.” Both the United States and China have put many of their tariffs on each other’s exports on pause as talks continue.
However, uncertainty over what is to come is still affecting companies and their profit-making abilities.
Benchmark U.S. crude oil gained 24 cents to $65.22 a barrel. Brent crude, the international standard, edged up 17 cents to $67.045 a barrel.
The U.S. dollar rose to 145.11 Japanese yen from 144.84 yen. The euro cost $1.1420, down from $1.1425.
