Global shares advance amid hopes for US-China trade deal

Full Screen
1 / 4

Copyright 2018 The Associated Press. All rights reserved

A currency trader stands near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room in Seoul, South Korea, Monday, Nov. 25, 2019. Asian shares were mostly higher Monday amid some optimism that the U.S. and China may edging closer to a trade deal. (AP Photo/Lee Jin-man)

TOKYO – Global shares rose Monday amid some optimism that the U.S. and China may be edging closer toward a deal on a trade dispute that has been rattling markets for more than a year.

Over the weekend, Beijing issued new guidelines for protecting intellectual property, a key concern for foreign investors and a sore point in the dispute with Washington over trade and technology.

Britain’s FTSE 100 rose 0.9% to 7,394, while France’s CAC 40 added 0.4% in midday trading to 5,915. Germany’s DAX gained 0.4% to 13,221 after a survey showed that German business confidence has increased slightly.

U.S. shares were set to drift higher with Dow futures adding 0.3% to 27,931 and S&P 500 futures rising 0.2% to 3,119.

Japan’s benchmark Nikkei 225 surged 0.8% to finish at 23,292.81, while Australia’s S&P/ASX 200 added 0.3% to 6,731.40. South Korea’s Kospi gained 1.0% to 2,123.50. Hong Kong’s Hang Seng jumped 1.5% to 26,993.04, while the Shanghai Composite advanced 0.7% to 2,906.17.

Investors were watching the situation in Hong Kong, where pro-democracy candidates won a majority of seats in a local district council election Sunday. After nearly six months of often violent protests, it is yet another challenge for Chief Executive Carrie Lam’s government.

“The result might not be market-friendly as it sets to challenge Carrie Lam’s leadership and bring up political uncertainties. But it could also mark a turning point in stopping the violent clashes,” said Margaret Yang, market analyst at CMC Markets in Singapore.

Markets around the world churned last week on uncertainty about whether the U.S. and China can soon halt their trade dispute, or at least stop it from escalating.