World Stocks Mixed Friday 05/25 05:40
World stock markets were mixed Friday after North Korea issued a
surprisingly restrained response to U.S. President Donald Trump's abrupt
decision to cancel a planned summit.
HONG KONG (AP) -- World stock markets were mixed Friday after North Korea
issued a surprisingly restrained response to U.S. President Donald Trump's
abrupt decision to cancel a planned summit.
KEEPING SCORE: European shares rose in early trading. Germany's DAX rose 0.9
percent to 12,973.47 and France's CAC 40 added 0.5 percent to 5,577.16.
Britain's FTSE 100 climbed 0.4 percent to 7,745.00. Wall Street was poised to
open higher. Dow futures added 0.3 percent to 24,865.00 and broader S&P 500
futures were up 0.2 percent to 2,732.90.
ASIAN SCORECARD: Japan's benchmark Nikkei 225 index rose 0.1 percent to
close at 22,450.79 but South Korea's Kospi lost 0.2 percent to 2,460.80. Hong
Kong's Hang Seng shed 0.6 percent to 30,588.04 and the Shanghai Composite in
mainland China slipped 0.4 percent to 3,141.30. Australia's S&P/ASX 200 dipped
0.1 percent to 6,032.80. Taiwan's benchmark rose and Southeast Asian indexes
were mostly lower.
SUMMIT SCRUBBED: Trump cancelled a June meeting with North Korean leader Kim
Jong Un, blaming it on "tremendous anger and open hostility" that was expressed
in a statement by a North Korean official. Trump later said the meeting could
still happen. North Korea said it's still willing to sit down for talks with
the U.S. "at any time, at any format," a remarkably restrained and diplomatic
response that contrasts with Pyongyang's traditional belligerence.
QUOTEWORTHY: "The reality of the situation is starting to dawn on markets
that this is political theater engineered for domestic consumption. The reality
is it doesn't change the economic outlook at all," said Michael McCarthy, chief
strategist at CMC Markets in Sydney. He added that the more likely explanation
is that investors are using it as an excuse to pull back after a strong run in
CHINA-US TRADE: U.S. Commerce Secretary Wilbur Ross is due to arrive in
Beijing on Saturday for more talks on the dispute between China and the U.S.
over trade and technology policy. China's official Xinhua News Agency said the
two sides will "continue negotiations on Chinese-U.S. economic and trade
issues" until Monday. Last week China promised to buy more U.S. goods but the
two sides made scant progress on a final settlement.
WEEK AHEAD: Investors are anticipating the latest batch of economic data for
the U.S. and China due out next week, including a private payroll report and
GDP numbers for the U.S. on Wednesday and China's official monthly
manufacturing index for Thursday. The numbers will give fresh insight into the
state of the world's two largest economies.
SAMSONITE SLUMP: The luggage maker's shares tumbled for a second day in Hong
Kong trading after short-seller Blue Orca Capital issued a report questioning
its accounting and its CEO's credentials. Samsonite said in a statement that
the conclusions were incorrect. Its shares fell 12 percent after sliding 9
percent on Thursday. Short-sellers profit when a company's shares fall.
ENERGY: Oil futures extended losses. Benchmark U.S. crude fell 54 cents to
$70.17 a barrel in electronic trading on the New York Mercantile Exchange. The
contract lost 1.6 percent to settle at $70.71 per barrel on Thursday. Brent
crude, used to price international oils, fell 89 cents to $77.90 in London.
CURRENCIES: The dollar rose to 109.54 yen from 109.25 yen in late trading
Thursday. The euro rose to $1.1723 from $1.1720.