World Shares Mixed on Wednesday 05/22 06:45
World shares were mixed Wednesday after a rebound in technology stocks
helped power an overnight rally on Wall Street.
BANGKOK (AP) -- World shares were mixed Wednesday after a rebound in
technology stocks helped power an overnight rally on Wall Street.
After a day of modest gains in Asia, Britain's FTSE 100 rose 0.4% to
7,360.41, while the DAX in Germany edged 0.1% higher to 12,152.04. The CAC 40
in France slipped 0.2% to 5,377.06. U.S. markets were set for a lower open,
with the future contract for the Dow Jones Industrial Average down 0.2% to
25,832.00. The S&P 500 future contract also shed 0.2%, to 2,861.00.
Investors snapped up technology shares Tuesday after the U.S. government
opted to temporarily ease off on proposed restrictions on technology sales to
Huawei, ZTE and other Chinese companies.
A 90-day grace period announced by the Department of Commerce brightened
sentiment. But "the reality is that a resumption of the limitations after 90
days would most certainly still affect the global supply chain and hit hard at
a touchy issue for China to potentially induce further retaliation," Jingyi Pan
of IG said in a commentary.
In Asia, Japan's Nikkei 225 index added 0.1% to 21,283.37.
The government reported that Japan's trade surplus dropped 90% from a year
earlier in April as a 6% drop in shipments to China bit into its exports. Total
exports fell 2.4% year-on-year while imports rose more than 6% thanks to higher
oil prices. But that gloomy news was balanced by a rise in machinery orders.
In South Korea, the Kospi advanced 0.2% to 2,064.86. Hong Kong's Hang Seng
gained 0.2% to 27,705.94, and the S&P ASX 200 in Sydney edged 0.2% higher to
6,510.70. The Shanghai Composite index lost 0.5% to 2,891.70. India's Sensex
climbed 0.6% to 39,183.37. Shares fell in Taiwan and Jakarta but rose in
Singapore and Thailand.
The Trump administration's sanctions against Huawei and other Chinese
technology companies have begun to bite even though their dimensions remain
unclear. U.S. companies such as Qualcomm and Broadcom that supply the Chinese
tech powerhouse with computer chips face a drop in sales, and Huawei's
smartphone sales could get decimated with the anticipated loss of Google's
popular software and services.
The U.S. move escalates trade-war tensions with Beijing, but also risks
making China more self-sufficient over time. About one-third of Huawei's
suppliers are American chipmakers.
The S&P 500 index rose 0.9% to 2,864.36. The Dow gained 0.8% to 25,877.33.
The technology heavy Nasdaq composite climbed 1.1%, to 7,785.72, erasing a
good chunk of Monday's losses. The Russell 2000 index of small companies picked
up 1.3%, to 1,545.25.
Intel rose 2.1% and Texas Instruments added 2.2%. Broadcom, which gets about
half of its revenue from China, gained 1%. Qualcomm, which gets more than half
of its revenue from China, rose 1.5%. Apple rebounded 1.9% after falling a day
ENERGY: Benchmark U.S. crude slipped lost 58 cents to $62.55 per barrel in
electronic trading on the New York Mercantile Exchange. It lost 8 cents on
Tuesday to settle at $63.13 per barrel. Brent crude, the international
standard, shed 51 cents to $71.67 per barrel.
CURRENCIES: The dollar fell to 110.41 Japanese yen from 110.50 yen on
Tuesday. The euro was flat at $1.1161.