Global stocks gain on manufacturing data, head of US holiday
Global stock markets rose Monday after a survey showed Japan's manufacturing outlook improving and as oil prices continued to recover from a recent slide. Trading was thin, however, due to a holiday in the U.S. on Tuesday.
KEEPING SCORE: France's CAC-40 gained 1 percent to 5,172 and Germany's DAX added 0.6 percent to 12,395. London's FTSE 100 advanced 0.3 percent to 7,334. On Wall Street, futures for the Dow Jones industrial average and the Standard & Poor's 500 index were both up 0.3 percent.
MANUFACTURING: The Japanese central bank's Tankan survey of large manufacturers found they believe business conditions are improving and plan to increase investment as export demand recovers. A separate survey of factory purchasing managers also indicated the outlook improved in June for the 10th straight month. A similar report on the U.S. manufacturing sector is due later in the day and will be monitored by investors gauging the government's success in boosting the industrial sector.
ANALYST'S TAKE: The Tankan "yielded surprisingly positive results," said Jingyi Pan of IG. "Both large manufacturers' index and outlook had surprised on the upside."
ASIA'S DAY: The Shanghai Composite Index rose 0.1 percent to 3,195.91 and Tokyo's Nikkei 225 added 0.1 percent to 20,055.80. Hong Kong's Hang Seng was unchanged at 25,776.71 and Sydney's S&P-ASX 200 shed 0.6 percent to 5,684.50. Seoul's Kospi added 0.1 percent to 2,394.48 and India's Sensex gained 0.8 percent to 31,167.18. Benchmarks in Taiwan, Bangkok and Manila gained while New Zealand and Singapore fell.
KOREAN EXPORTS: Exports in June rose but the gains were overshadowed by President Donald Trump's demand to renegotiate a 2012 trade agreement. Exports increased by 13.7 percent over a year earlier, driven by sales of electronics and ships. Growth was faster than May but below forecasts. The trade surplus widened to $11.4 billion. Korean analysts warn, however, that the trade outlook is clouded by Trump's demand Friday during a visit to Washington by his Korean counterpart, Moon Jae-in, for changes to a trade agreement that he said would be aimed at narrowing the U.S. trade deficit with South Korea.
ENERGY: Benchmark U.S. crude gained 15 cents to $46.19 per barrel in electronic trading on the New York Mercantile Exchange. The contract soared $1.11 on Friday. Brent crude, used to price international oils, rose 11 cents to $48.88 in London. It jumped $1.14 the previous session.
CURRENCY: The dollar rose to 112.98 yen from Friday's 112.34 yen. The euro declined to $1.1367 from $1.1427.