Global Shares Higher on Friday 04/16 05:17
Global shares advanced Friday after China reported its economy expanded at
an 18% annual pace in the first quarter of the year.
TOKYO (AP) -- Global shares advanced Friday after China reported its economy
expanded at an 18% annual pace in the first quarter of the year.
France's CAC 40 added 0.2% in early trading to 6,247.86 while Germany's DAX
gained 0.6% to 15,352.50. Britain's FTSE 100 rose 0.4% to 7,013.48. U.S. shares
were set for a slow start, with Dow futures inching up less than 0.1% at
33,925.0. S&P 500 futures fell 0.1% to 4,159.90.
Jubilance over positive Chinese and U.S. economic data and another record
high on Wall Street was tempered by caution over coronavirus outbreaks in the
region, where rollouts of the vaccine have lagged.
Japan's benchmark Nikkei 225 gained 0.1% to finish at 29,683.37. Australia's
S&P/ASX 200 recouped earlier losses, rising 0.1% to 7,063.50. South Korea's
Kospi added 0.1% to 3,198.62. Hong Kong's Hang Seng added 0.6% to 28,969.71,
while the Shanghai Composite gained 0.8% to 3,426.62.
The contrast between the speed of vaccine rollouts in the U.S. and Asia has
been striking. Nearly half of American adults have gotten at least one dose of
the vaccine, and about 30% of adults in the U.S. have been fully vaccinated,
according to the Centers for Disease Control and Prevention.
Japan, where inoculations for the public have barely started, has seen a
resurgence of infections in recent weeks. The country's western metropolis of
Osaka reported more than 1,200 new infections Thursday, its highest since the
pandemic began. A top ruling party official suggested the possibility of
canceling the Tokyo Olympics, set to start in July, if infections continue to
Japan decided on measures to stem the rise of infections for several
additional areas, Kanagawa, Chiba and Saitama prefectures, near Tokyo, as well
as Aichi in central Japan. Six areas, including major cities of Tokyo and
Osaka, were already under such measures, which has restaurants closing at 8
p.m. The government is also asking people to social distance and avoid
gathering in crowds.
Prakash Sakpal and Nicholas Mapa, senior economists for ING, said the
markets are awaiting the outcome of a meeting between Japanese Prime Minister
Yoshihide Suga and President Joe Biden, set for the weekend.
China's economy expanded at a sizzling annual pace of 18.3% in the first
quarter of the year. But its rebound in factory and consumer activity following
the coronavirus pandemic is leveling off, according to data released Friday.
The figures were magnified by comparison with early 2020, when China suffered
its deepest contraction in decades.
Investors are welcoming a raft of encouraging economic reports showing how
hungry Americans are to spend again, how fewer workers are losing their jobs
and how much fatter corporate profits are getting.
Expectations are very high on Wall Street that the economy -- and thus
corporate profits -- are rebounding thanks to COVID-19 vaccinations and massive
support from the U.S. government and Federal Reserve. New data on retail sales
and jobless claims Thursday reinforced the view that the recovery is
Much of the surge in the U.S. was due to $1,400 payments from the U.S.
government's latest economic rescue effort hitting households' bank accounts.
Economists said that shows how primed people are to spend as the economy
reopens and conditions brighten. That's huge for an economy that's made up
mostly of consumer spending.
An encouraging read on the job market showed 576,000 people applied for
unemployment benefits last week, well below the 700,000 that economists had
forecast and down from 769,000 the prior week. It's also the lowest number
since the pandemic began.
Adding to the optimism, more big U.S. companies reported even healthier
profits for the first three months of 2021 than analysts had forecast.
Expectations are already high for this earnings reporting season, which
unofficially got underway on Wednesday and could result in the strongest growth
in more than a decade.
In energy trading, benchmark U.S. crude lost 3 cents to $63.43 a barrel in
electronic trading on the New York Mercantile Exchange. It gained 31 cents to
$63.46 per barrel on Thursday. Brent crude, the international standard, added 3
cents to $66.97 a barrel.
In currency trading, the U.S. dollar rose to 108.86 Japanese yen from 108.73
yen. The euro cost $1.1978, up from $1.1970.