Asian Stocks Rise As China Starts Reviving Businesses
Major Asian stock markets rose on Monday, June 6, 2022, after Wall Street fell and a survey revealed that the downturn in Chinese service activity eased in May as anti-virus controls were lifted in Shanghai and other major cities, Joe McDonald reported for the Associated Press (AP.)
Photo Insert: The Hang Seng in Hong Kong increased by 1.4% to 21,379.67, while the Nikkei 225 in Tokyo increased by 0.7 % to 27,956.19.
Shanghai, Tokyo, and Hong Kong benchmarks all rose. On Wall Street, the benchmark S&P 500 index fell 1.6 percent on Friday as investors worried about rising interest rates, a possible economic downturn, and job losses.
According to a survey, activity in Chinese retail and other service industries fell in May, but at a slower rate than in the previous month. After a two-month shutdown to combat virus outbreaks, the ruling Communist Party is allowing stores, factories, and other businesses in Shanghai to reopen. Beijing's restrictions are gradually easing.
The Shanghai Composite Index rose 1.2% to 3,233.73 after Caixin, a business news magazine, reported that its monthly purchasing managers' index for services increased to 41.4 from 36.2 in April on a 100-point scale, with numbers below 50 indicating activity contraction.
The Hang Seng in Hong Kong increased by 1.4% to 21,379.67, while the Nikkei 225 in Tokyo increased by 0.7 % to 27,956.19. Korean markets were closed for a holiday. The S&P-ASX 200 in Sydney fell 0.3 percent to 7,215.90, while New Zealand markets were also closed for a holiday.
The Sensex in India opened 0.6 percent lower at 55,559.30. Southeast Asian markets shrank.
On Wall Street, the S&P 500 fell to 4,108.54, its eighth weekly loss in the previous nine weeks. The Dow Jones Industrial Average dropped 1% to 32,899.70. The Nasdaq fell 2.5% to 12,012.73. More than four out of every five S&P 500 stocks fell. The biggest drops were in technology stocks.
Tesla fell 9.2% after U.S. safety regulators said more than 750 owners had complained about cars abruptly stopping on highways for no apparent reason while using partially automated driving systems. In electronic trading on the New York Mercantile Exchange, benchmark US crude rose 70 cents to $119.57 per barrel.
On Friday, the contract rose $2 to $118.87. Brent crude, the benchmark for international oil trading, rose 72 cents to $120.44 per barrel in London. It closed at $119.72, up $2.11 from the previous session. The dollar fell to 130.72 yen from 130.85 yen on Friday. The euro rose from $1.0720 to $1.0724.