Global markets rise as investors watch US-China trade talks

A Chinese investor uses his smartphone as he monitors stock prices at a brokerage house in Beijing, Friday, May 10, 2019. Asian shares were mostly higher Friday but benchmarks in Shanghai and Hong Kong gave up earlier strong gains amid uncertainty over the potential outcome of trade talks between China and the U.S. (AP Photo/Mark Schiefelbein)
Chinese investors monitor stock prices at a brokerage house in Beijing, Friday, May 10, 2019. Asian shares were mostly higher Friday but benchmarks in Shanghai and Hong Kong gave up earlier strong gains amid uncertainty over the potential outcome of trade talks between China and the U.S. (AP Photo/Mark Schiefelbein)
A computer terminal displays stock information at a brokerage house in Beijing, Friday, May 10, 2019. Asian shares were mostly higher Friday but benchmarks in Shanghai and Hong Kong gave up earlier strong gains amid uncertainty over the potential outcome of trade talks between China and the U.S. (AP Photo/Mark Schiefelbein)
Chinese investors use computer terminals as they monitor stock prices at a brokerage house in Beijing, Friday, May 10, 2019. Asian shares were mostly higher Friday but benchmarks in Shanghai and Hong Kong gave up earlier strong gains amid uncertainty over the potential outcome of trade talks between China and the U.S. (AP Photo/Mark Schiefelbein)
Chinese investors monitor stock prices at a brokerage house in Beijing, Friday, May 10, 2019. Asian shares were mostly higher Friday but benchmarks in Shanghai and Hong Kong gave up earlier strong gains amid uncertainty over the potential outcome of trade talks between China and the U.S. (AP Photo/Mark Schiefelbein)

TOKYO — Global stock markets were mostly higher on Friday in volatile trading as investors appeared to hope that the United States and China might yet reach a deal to solve their escalating trade war.

France's CAC 40 gained 1.0% to 5,3634, while Germany's DAX added 1.2% to 12,121. Britain's FTSE 100 rose 0.5% to 7,244 after some upbeat first quarter growth figures. U.S. shares were set to open lower, with Dow futures slipping 0.1% and S&P 500 futures shedding 0.3%.

The Shanghai Composite index surged 3.1% to 2,939.21 while the A-share index in the smaller market of Shenzhen jumped 3.8%. Traders said that was mainly because Chinese institutional investors stepped up buying to support the country's financial markets.

China's Commerce Ministry said would take unspecified "necessary countermeasures" after the Trump administration raised duties on $200 billion of Chinese imports to 25% from 10%. The action came as trade negotiations were underway in Washington.

"Investors are still clinging to the hope that the U.S. and China will eventually manage to agree some sort of deal," analysts at financial firm Rabobank said in a commentary.

Hong Kong's Hang Seng gained 0.8% to 28,550.24, while Japan's Nikkei 225 slipped 0.3% to finish at 21,344.92. Australia's S&P/ASX 200 rose nearly 0.3% to 6,310.90. South Korea's Kospi gained 0.3% to 2,108.04 and India's Sensex edged 0.3% higher to 37,681.09. Shares fell in Taiwan but recovered in Thailand.

Analysts said China could raise tariffs on some U.S. exports, though the amount would not match the costs imposed by the increase in U.S. import duties. It could step up interference in U.S. companies' deal-making and other areas.

The increased tensions, if not resolved soon by a deal between Beijing and Washington, could hurt growth across the region and beyond, said Rajiv Biswas of IHS Markit.

"The escalating U.S.-China trade war adds to significant existing headwinds already facing the Asia-Pacific region from a range of factors, including the sharp slowdown in global electronics new orders and weak new orders in the eurozone manufacturing," Biswas said.

ENERGY: Benchmark U.S. crude rose 33 cents to $62.03 a barrel in electronic trading on the New York Mercantile Exchange. It dropped 0.7% to settle at $61.70 per barrel overnight. Brent crude, the international standard, added 42 cents to $70.81 a barrel.

CURRENCIES: The dollar inched up to 109.79 Japanese yen from 109.77 yen. The euro strengthened to $1.1232 from $1.1216.

___

Follow Yuri Kageyama on Twitter https://twitter.com/yurikageyama

On Instagram https://www.instagram.com/yurikageyama/?hl=en

People also read these

Merkel appeals to Russia to enable Syria...

Sep 5, 2016

German Chancellor Angela Merkel is renewing an appeal to Russia to enable a cease-fire in Syria and...

China says it can't end North Korea nuke program...

Sep 12, 2016

China says the United States has inflamed the conflict on the Korean Peninsula and must carry the...

Asian stocks rise after Wall Street gains

Dec 21, 2016

Asian stocks are higher after U.S. stocks rose to record levels despite attacks in Germany and...

Choked by smog, Beijing creates new environmental...

Jan 8, 2017

Officials in Beijing have announced a new environmental police squad to root out illegal burning in...

McDonald's sells China business in deal worth up...

Jan 9, 2017

Fast-food giant McDonald's is selling a controlling stake in its China business to a group of...