Asian shares rise, China trading closed for national holiday

Jun 1, 2022, 11:54 PM | Updated: Jun 2, 2022, 9:07 pm

TOKYO (AP) — Asian shares rose Friday amid mixed signs for investors such as rising energy prices and COVID-19 restrictions easing in China.

Trading was closed in China for the Dragon Boat Festival, a national holiday. Benchmarks in the rest of the region edged higher, cheered by a rally overnight on Wall Street.

Market players are closely watching for U.S. non-farm employment data later in the day, as well as a slew of economic data on Japan next week. The OPEC meeting, in which oil-producing nations decided to boost some output, failed to steady energy prices significantly.

“To say the OPEC meeting outcome disappointed expectations would be an understatement,” said Stephen Innes, managing partner at SPI Asset Management.

Japan and the U.S. signed a revision on the “beef safeguard” mechanism under the U.S.-Japan Trade Agreement, which will help American beef producers meet Japan’s growing demand for high-quality beef. The deal will reduce the chances Japan’s safeguard duties would be imposed on U.S. beef, both sides said. That happened in early 2021.

“Together, the United States and Japan are demonstrating our commitment to working together on shared priorities to achieve concrete, economically meaningful results for our people,” said U.S. Trade Representative Katherine Tai.

Japan’s benchmark Nikkei 225 jumped 1.1% in morning trading to 27,712.43. Australia’s S&P/ASX 200 added 0.7% to 7,226.70, while South Korea’s Kospi gained 0.4% to 2,668.95.

Stocks on Wall Street overcame a shaky start to close broadly higher Thursday, as the major indexes more than made up for losses earlier in the holiday-shortened week.

The S&P 500 rose 1.8% to 4,176.82, with more than 85% of the stocks in the benchmark index notching gains. The Dow Jones Industrial Average rose 1.3% to 33,248.28, while the Nasdaq climbed 2.7% to 12,316.90.

Technology stocks, whose lofty values tend to give the broader market a harder push higher or lower, accounted for a big share of Thursday’s rally. Chipmaker Nvidia jumped 6.9% and software maker Adobe rose 5.5%.

Communications stocks, companies that rely on direct consumer spending and some big industrial firms gained ground. Facebook parent Meta Platforms rose 5.4%, Expedia Group added 6.3% and Boeing climbed 7.5%.

Small company stocks rose, signaling confidence about economic growth. The Russell 2000 gained 2.3%, to 1,897.67.

Trading has been choppy in recent days as investors remain worried about inflation and the interest rate increases the Federal Reserve is using to fight it. Thursday’s market rally may have been spurred, in part, by a report showing private sector hiring that came in well below economists’ forecasts.

“The private payroll report was pretty weak,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “It’s maybe one of those environments where people are looking for weak data that gives them some hope that the Fed will pause (rate hikes) in September.”

Rising energy prices have been feeding inflation, which is already at its highest levels in four decades. U.S. gasoline prices hit another record high Thursday, with the average price at the pump costing $4.71 per gallon, according to motoring club federation AAA.

Investors remain focused on the balance between inflation, rising interest rates and economic growth. Several economic reports on Wednesday bolstered expectations for the Fed to keep raising interest rates aggressively. Wall Street is concerned that the Fed could slow economic growth too much and potentially send the economy into a recession.

But on Thursday, payroll processor ADP reported that hiring by private U.S. companies rose just 128,000 in May. That’s well below the 302,000 hires economists expected, according to FactSet.

Wall Street will get another glimpse into the health of the broader U.S. economy on Friday when the Labor Department releases its employment report for May. The jobs market had initially been slow to recover from the impact of the virus pandemic, but has bounced back strongly with low unemployment and plentiful job postings.

Meanwhile high inflation is eating into corporate profits, while the war in Ukraine and COVID-19 restrictions in China have also weighed on markets.

Bond yields were relatively stable. The yield on the 10-year Treasury, which helps set interest rates on mortgages and other loans, fell to 2.91% from 2.93% from late Wednesday.

In energy trading, benchmark U.S. crude dipped 23 cents to $116.64 a barrel. Brent crude, the international standard, fell 12 cents to $117.49 a barrel.

In currency trading, the U.S. dollar inched down to 129.82 Japanese yen from 129.87 yen. The euro cost $1.0765, up from $1.0752.

___

AP Business Writers Damian J. Troise and Alex Veiga contributed.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of...

Associated Press

Saudi Arabia reducing global oil supply, could spell higher prices for US drivers

Saudi Arabia will reduce how much oil it sends to the global economy, taking a unilateral step to prop up the sagging price of crude.

1 day ago

This photo provided by Robert Wilkes, owner of a house boat management company, shows smoke rising ...

Associated Press

Houseboats catch fire while docked at Wahweap Marina on Lake Powell

More than half a dozen house boats momentarily caught fire at a popular boating destination on the Utah-Arizona line on Friday.

3 days ago

File - Women work in a restaurant kitchen in Chicago, Thursday, March 23, 2023. On Friday, the U.S....

Associated Press

US hiring, unemployment jump in May and what that says about the economy

The nation’s employers stepped up their hiring in May, adding a robust 339,000 jobs, well above expectations.

3 days ago

(Pixabay Photo)...

Associated Press

Oath Keeper from Arizona sentenced for role in Jan. 6 riot at US Capitol

Edward Vallejo, a U.S. Army veteran from Phoenix, oversaw a “Quick Reaction Force” at a Virginia hotel that was prepared to deploy an arsenal of weapons into Washington if needed, authorities say.

4 days ago

FILE - U.S. Border Patrol Chief Raul Ortiz listens during a news conference, Jan. 5, 2023, in Washi...

Associated Press

US Border Patrol chief is retiring after seeing through end of Title 42 immigration restrictions

The head of the U.S. Border Patrol announced Tuesday that he was retiring, after seeing through a major policy shift that seeks to clamp down on illegal crossings at the U.S.-Mexico border following the end of Title 42 pandemic restrictions.

5 days ago

FILE - President Joe Biden talks with House Speaker Kevin McCarthy of Calif., on the House steps as...

Associated Press

House OKs debt ceiling bill to avoid default, sends Biden-McCarthy deal to Senate

The House approved a debt ceiling and budget cuts package late Wednesday, as President Joe Biden and Speaker Kevin McCarthy assembled a bipartisan coalition of centrist Democrats and Republicans against fierce conservative blowback and progressive dissent.

5 days ago

Sponsored Articles

...

SANDERSON FORD

Thank you to Al McCoy for 51 years as voice of the Phoenix Suns

Sanderson Ford wants to share its thanks to Al McCoy for the impact he made in the Valley for more than a half-decade.

...

OCD & Anxiety Treatment Center

How to identify the symptoms of 3 common anxiety disorders

Living with an anxiety disorder can be debilitating and cause significant stress for those who suffer from the condition.

(Desert Institute for Spine Care in Arizona Photo)...

Desert Institute for Spine Care in Arizona

5 common causes for chronic neck pain

Neck pain can debilitate one’s daily routine, yet 80% of people experience it in their lives and 20%-50% deal with it annually.

Asian shares rise, China trading closed for national holiday