BEIJING Global stocks rose Friday on hopes that next month’s U.S.-Chinese talks might produce progress towards ending a costly tariff war over trade and technology.
Investors were encouraged by a Chinese government statement Thursday that its penalties on U.S. products are adequate. That suggested Beijing might be pausing in a tit-for-tat cycle of tariff hikes by both sides that has fueled fears the global economy might tip into recession.
The comment was “temporary relief for markets,” Jingyi Pan of IG said in a report. However, Pan cautioned it was in line with the view that Beijing “may delay a deal until the 2020 U.S. elections.”
Some analysts say Beijing might be waiting for President Donald Trump’s re-election campaign in hopes he will feel pressure to strike a deal — or is holding out to negotiate with his successor if he loses.
“This could still make for prolonged trade uncertainty,” Pan said.
In Europe, Germany’s DAX led the way, gaining 1.2 percent to 11,983 in midday trading. France’s CAC 40 added 1 percent to 5,500 while London’s FTSE rose 0.7 percent to 7,239.
On Wall Street, the futures for the Standard & Poor’s 500 and Dow Jones Industrial Average both rose 0.5 percent.
U.S. stocks finished Thursday with broad gains for the second day in a row after an uneven start to the week.
The S&P 500 and Dow both rose 1.3 percent and the Nasdaq gained 1.5 percent. The S&P 500 is on track for its first weekly gain in five weeks.
Anxiety about the U.S.-Chinese trade fight fueled market volatility this month.
Washington and Beijing are deadlocked in talks over U.S. complaints about China’s trade surplus and industry plans, which its trading partners say are based on stealing or pressuring companies to hand over technology.
Negotiators are to meet next month in Washington after the latest round of talks in July in Shanghai produced no sign of progress.
In Asia, Tokyo’s Nikkei 225 closed up 1.2 percent at 20,704.37 and Hong Kong’s Hang Seng added 21 points to 25,724.73. The Shanghai Composite Index was off less than 5 points at 2,886.24.
Seoul’s Kospi rose 1.8 percent to 1,967.79 and Sydney’s S&P-ASX 200 advanced 0.4 percent to 6,604.20.
India’s Sensex gained 0.4 percent to 37,212.79. Markets in Taiwan, New Zealand and Southeast Asia rose. (AP)
