Tokyo — Global stocks were mostly higher on Tuesday, as Tokyo stocks rebounded and calmed after last week’s plunge.
France’s CAC 40 was up about 0.2% in early trading, reaching 7,263.55, while Germany’s DAX was up 0.3% at 17,778.44. Britain’s FTSE 100 was down 0.1% at 8,201.62. U.S. stocks are expected to rise, with Dow futures up 0.3% at 39,593.00. S&The P 500 futures rose 0.4% to 5,391.75.
In Asia, Japan’s benchmark Nikkei 225 rose 3.5% to 36,232.51. Australia’s S&The P/ASX 200 rose about 0.2% to 7,826.80. South Korea’s Kospi rose 0.1% to 2,621.50. Hong Kong’s Hang Seng rose 0.4% to 17,174.06, and the Shanghai Composite Index rose 0.3% to 2,867.95.
In Tokyo, there was demand for computer chip issues, with Tokyo Electron jumping 6.2%, reflecting strong performance in technology-related issues on Wall Street.
Investors also seemed to cheer the yen’s recent volatility. A low yen is a boon to major Japanese exporters like Toyota Motor Corp., as it allows them to convert their overseas imports into yen, which increases the value of their earnings, but a low currency erodes the country’s purchasing power.
The US dollar rose to 147.74 yen from 147.17 yen. The euro fell to 1.0925 dollars from 1.0935 dollars.
“Global geopolitical developments, such as tensions in East Asia, ongoing conflicts in Eastern Europe or disruptions in global trade, could further impact the dollar’s performance,” said Luca Santos, currency analyst at ACY Securities.
Last week, Japanese stocks suffered their worst slump since the Black Monday crash of 1987. Comments from a senior Bank of Japan official stressing the importance of stability helped calm the market somewhat.
Global uncertainties, including those related to Ukraine and the Middle East, and concerns about China are adding to concerns that could trigger market volatility.
Trading was quiet on Wall Street on Monday.&The P 500 closed little changed. Investors are looking at a variety of data expected later this week, including reports on U.S. inflation and retail sales. The best-case scenario would be signs of slowing inflation and strong sales.
These data are influencing decisions by central banks around the world, including the Federal Reserve, which has kept its key interest rate at its highest level in 20 years in an attempt to combat what is known as “stagflation.” The Fed is easing interest rates, which is giving the U.S. economy a boost, but it also risks worsening inflation.
Meanwhile, Japan’s central bank is gradually raising interest rates after years of zero or negative rates, seeking to bring inflation to an economy mired in long-term deflation.
Japan’s real gross domestic product (GDP) for April-June will be released on Wednesday. GDP is a measure of the value of a country’s goods and services.
Some analysts say Japan’s economic growth could be relatively strong, given recent data on domestic capital investment.
“In fact, real wages and real incomes in Japan have increased for the first time in two years, as energy and good prices have stabilized,” said Jesper Koll, director, strategist and Japan expert at Monex Group.
Several major U.S. companies, including Walmart and Home Depot, report earnings during the week. Most of the big U.S. companies reported better earnings than analysts had expected.
In energy trading, benchmark U.S. crude fell 40 cents to $79.66 a barrel. International standard Brent crude fell 42 cents to $81.88 a barrel.
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Yuri Kageyama is on X: https://x.com/yurikageyama
