Global shares are mixed, as Japan’s benchmark ticked up but quickly ran out of steam over news the prime minister won’t seek reelection as head of the governing party
Global shares trade mixed as market jitters calm while uncertainty lingersBy YURI KAGEYAMAAP Business WriterThe Associated PressTOKYO
TOKYO (AP) — Global shares traded mixed Wednesday, as Japan’s benchmark ticked up but quickly ran out of steam over news the prime minister won’t seek reelection as head of the governing party.
France’s CAC 40 added 0.7% in early trading to 7,324.59, while Germany’s DAX edged up 0.4% to 17,888.68. Britain’s FTSE 100 rose 0.6% to 8,280.28. U.S. shares were set to drift higher with Dow futures rising 0.1% to 39,927.00. S&P 500 futures were virtually unchanged at 5,458.50.
Japan’s benchmark Nikkei 225 rose 0.6% to finish at 36,442.43 following a day of ups and downs. Australia’s S&P/ASX 200 gained 0.3% to 7,850.70. South Korea’s Kospi added nearly 0.9% to 2,644.50. Hong Kong’s Hang Seng lost about 0.4% to 17,113.36, while the Shanghai Composite shed 0.6% to 2,850.656.
Japan’s governing Liberal Democratic Party controls a majority in the lower house of parliament, which picks the nation’s leader. Prime Minister Fumio Kishida’s public support ratings have sagged over a scandal involving shady political fund raising as well as other issues.
“We must show the Liberal Democratic Party will change. This will be the first step that will demonstrate that clearly,” Kishida said in announcing his decision.
Speculation is rife the party will turn to a younger politician as the next leader, with Shinjiro Koizumi, the son of former Prime Minister Junichiro Koizumi, among those being discussed. The younger Koizumi is still in his 40s, marking a departure from the elderly prime ministers of the past.
The overnight rise on Wall Street also boosted investor optimism.
A cautious mood remains in global markets over uncertainty about the U.S. economy. Next week brings a slew of economic data about Japan, including machinery orders, trade statistics, tallies of travelers from abroad, unemployment and consumer prices. Analysts think the Japanese economy basically remains on solid ground, thanks to the strong performance of some Japanese companies.
U.S. stocks rallied to one of their best days of the year after the first of several highly anticipated reports on the economy this week came in better than expected.
Inflation in the U.S., which has been a worry for years, finally appears to be slowing. That means the U.S. Federal Reserve may ease up on high interest rates.
Investors still have their eyes on the U.S. government’s data on inflation, expected later in the day. A report showing how much U.S. shoppers are spending at retailers comes Thursday.
The U.S. economy is still growing, and many economists don’t expect a recession, but a sharp slowdown in U.S. hiring last month raised questions about its strength.
In energy trading, benchmark U.S. crude rose 53 cents to $78.88 a barrel. Brent crude, the international standard, gained 51 cents to $81.20 a barrel.
In currency trading, the U.S. dollar rose to 147.17 yen from 146.84 yen. The euro cost $1.1017, up from $1.0995.
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Yuri Kageyama is on X: https://x.com/yurikageyama
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