Bangkok, May 28 (AP) Asian shares were mostly higher on Wednesday after President Donald Trump’s decision to delay a 50 per cent tariff on goods coming from the European Union sparked a rally on Wall Street.
US futures were little changed and oil prices rose.
Japan’s Nikkei 225 gained 0.5 per cent to 37,918.86 and traders were awaiting the outcome of an auction of 40-year Japanese government bonds. Government debt and bonds have become an increasingly important issue for markets in recent weeks as yields have climbed around the world.
The 40-year JGB’s yield is at a record 3.5 per cent and a recent auction found relatively few buyers. But analysts said worries eased a bit after Japan’s finance ministry sent a questionnaire to bond investors that they took as a signal of efforts to calm the market.
The dollar slipped against the Japanese yen, trading at 144.33 yen down from 144.36 yen. The euro fell to USD 1.1312 from USD 1.1329.
Elsewhere in the region, Hong Kong’s Hang Seng index lost 0.3 per cent to 23,304.51, while the Shanghai Composite index edged 0.1 per cent higher to 3,342.36.
Australia’s S and P/ASX 200 gained 0.2 per cent to 8,425.10.
The S and P/NZX 50 in New Zealand fell 1.8 per cent after the central bank cut its benchmark interest rate.
In South Korea, the Kospi jumped 1.8 per cent to 2,685.44, helped by a global rally in technology shares. Samsung Electronics’ shares climbed 3.3 per cent while SK Hynix was up 3 per cent.
In Taiwan, the Taiex added 0.4 per cent.
Oil prices rose after the US authorisation to Chevron to export crude from Venezuela expired Tuesday. The Trump Administration has been trying to wind down US reliance on Venezuelan energy.
US benchmark crude oil gained 33 cents to USD 61.22 per barrel. Brent crude, the international standard, was up 31 cents at USD 63.88 per barrel.
On Tuesday, Wall Street’s roller-coaster ride created by Trump’s trade policies resumed following the delay for his tariffs on the European Union.
US markets had been closed for Memorial Day on Monday, and the S and P 500 leaped 2.1 per cent in its first trading since Trump’s announcement.
It closed at 5,921.54. The Dow Jones Industrial Average added 1.8 per cent to 42,343.65, and the Nasdaq composite gained 2.5 per cent to 19,199.16.
Wall Street’s roller coaster had dropped Friday after Trump announced the tariffs on France, Germany and the other 25 countries represented by the European Union.
Talks with the EU have raised hope the United States can reach a deal with one of its largest trading partners, helping to keep global commerce moving and avoiding a possible recession.
Trump declared a similar pause on his stiff tariffs for products coming from China earlier this month, which launched an even bigger rally on Wall Street at the time.
The uncertainty caused by on-again-off-again tariffs are leaving households and businesses wary about spending and investments. Surveys have already shown US consumers are feeling worse about the economy’s prospects and where inflation may be heading because of tariffs.
However, a report Tuesday by the Conference Board said confidence among US consumers has improved more in May than economists expected.
It was the first increase in six months, and consumers’ expectations for income, business and the job market in the short term jumped sharply, though they remain below the level that typically signals a recession ahead. About half the survey results came after Trump paused some of his tariffs on China.
On Wall Street, Nvidia rallied 3.2 per cent and was the strongest single force driving the S and P 500 higher ahead of its profit report coming on Wednesday. It’s the last to report this quarter among the “Magnificent Seven” Big Tech companies.
Nvidia has been riding a tidal wave of growth created by the frenzy around artificial-intelligence technology, but it’s facing criticism that its stock price has shot too high.
Informatica climbed 6 per cent after Salesforce said it would buy the AI-powered cloud data management company in an all-stock deal valuing it at about USD 8 billion. Salesforce rose 1.5 per cent.
Treasury yields eased to take some of the pressure off the stock market. The yield on the 10-year Treasury fell to 4.44 per cent from 4.51 per cent late Friday. It had been rising last week, in part because of worries about the US government’s rapidly increasing debt. (AP) PY PY
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