sunny.png
Tuesday June 25th, 2019 9:53AM

China's moves on foreign investment help shore up markets

By The Associated Press
Related Articles
  Contact Editor

LONDON (AP) — Hopes that the U.S. and China will resolve their trade dispute as Beijing tweaked rules on foreign investment has helped shore up global stock markets on Friday.

Following a week dominated by Brexit uncertainty, traders focused on the annual session of China's ceremonial congress, which ended with Premier Li Keqiang pledging support for the slowing economy.

The congress endorsed a law aimed at defusing a tariff war with Washington by discouraging Chinese officials from pressuring companies to hand over technology. The measure is part of an investment law that aims to address complaints, particularly from the U.S., that China's system is rigged against foreign companies.

"This is designed to protect the rights and interests of foreign investors and attract more foreign investment," Li said.

The Shanghai Composite index jumped 1.0 percent to 3,021.75 and Hong Kong's Hang Seng added 0.6 percent to 29,012.26. The positive tone helped markets around the world.

"The Chinese government has finally taken steps to encourage foreign investment into the country, with a new law passed that is supposed to create a more level playing field between Chinese and international firms in the country," said Joshua Mahony, senior market analyst at IG.

In Europe, London's FTSE 100 climbed 0.7 percent to 7,233. Parliament voted, following weeks of political gridlock, to seek an extension from the European Union over the country's exit from the bloc to avoid a chaotic withdrawal on the scheduled exit date of March 29.

Power to approve or reject the extension lies with the EU, which has signaled that it will only allow a delay if Britain either approves a divorce deal or makes a fundamental shift in its approach to Brexit. Prime Minister Theresa May is likely to ask EU leaders for an extension at a March 21-22 summit of the bloc in Brussels after she tries again to win support from lawmakers for her deal after two resounding defeats.

"Any respite to the intensity of Brexit is going to be fleeting, for despite the lack of any major economic events today, we are now looking towards another meaningful vote next week," said IG's Mahony.

Elsewhere in Europe, Germany's DAX rose 0.9 percent to 11,693 while the CAC 40 in France was 0.9 percent higher too at 5,398. Wall Street looked set for gains, with Dow futures and the broader S&P 500 futures up 0.5 percent.

Earlier in Asia, Japan's Nikkei 225 index jumped 0.8 percent to 21,450.85 as the Bank of Japan ended a policy meeting by keeping its key interest rate at minus 0.1 percent, maintaining its stance of extreme monetary easing and lavish stimulus. And South Korea's Kospi advanced 1.0 percent to 2,176.11, while the S&P ASX 200 of Australia slipped 0.1 percent to 6,175.20.

CURRENCIES: The euro was flat at $1.1306 while the dollar declined 0.1 percent to 111.63 yen.

ENERGY: The price of U.S. crude oil fell 37 cents to $58.24 a barrel while the international standard, Brent, declined 50 cents to $66.73 a barrel.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
US industrial production rose just 0.1 percent in February
US industrial production increased a slight 0.1 percent in February, hurt by 2nd straight drop in manufacturing
9:16AM ( 11 minutes ago )
Mass shootings at New Zealand mosques kill 49; 1 man charged
Mass shootings at two mosques full of worshippers attending Friday prayers killed 49 people on what the prime minister called 'one of New Zealand's darkest days'
9:02AM ( 26 minutes ago )
China's moves on foreign investment help shore up markets
Hopes that the U.S. and China will resolve their trade dispute has helped shore up global stock markets on Friday.
8:53AM ( 34 minutes ago )
Associated Press (AP)
The Latest: Iranian minister says bigotry led to attack
Iran's foreign minister says bigotry in Western countries has led to the attacks on Muslims in New Zealand
8:23AM ( 1 hour ago )
FAA's close ties to Boeing questioned after 2 deadly crashes
FAA's close ties to Boeing and other airplane makers comes under scrutiny after 2 deadly crashes overseas
8:17AM ( 1 hour ago )
SEC charges Volkswagen, former CEO with defrauding investors
SEC charges Volkswagen, former CEO Winterkorn with defrauding American bond investors during its emissions scandal
8:08AM ( 1 hour ago )
AP Business
World shares gain as investors await news on China-US trade
Shares advance in Europe, Asia as investors await news on China-US trade, China, Japan keep stimulus for economies
5:45AM ( 3 hours ago )
Asian shares shrug off Wall St losses as China ends congress
Shares are higher in Asia as China, Japan keep stimulus for economies
12:52AM ( 8 hours ago )
Premier: China needs 'strong measures' to support economy
Premier: China needs 'strong measures' to support economic growth but Beijing plans to promote market reforms instead of using more lending or deficit spending
11:02PM ( 10 hours ago )
AP Business - Economy
Mt Gox Bitcoin exchange's Karpeles avoids jail time in Japan
Mt Gox Bitcoin exchange's Karpeles avoids jail time in Japan
12:09AM ( 9 hours ago )
World stocks rise ahead of vote to push Brexit back
World stocks rise ahead of vote to delay Britain's exit from the EU
5:42AM ( 1 day ago )
Asian stocks mixed after Chinese industrial data disappoints
Asian stocks mixed after China says its industrial output grew at slowest pace in 17 years
3:09AM ( 1 day ago )
AP Business - Financial Markets
US industrial production rose just 0.1 percent in February
US industrial production increased a slight 0.1 percent in February, hurt by 2nd straight drop in manufacturing
9:16AM ( 12 minutes ago )
Mass shootings at New Zealand mosques kill 49; 1 man charged
Mass shootings at two mosques full of worshippers attending Friday prayers killed 49 people on what the prime minister called 'one of New Zealand's darkest days'
9:02AM ( 26 minutes ago )
Mosque killer's rifles bore white-supremacist references
The self-proclaimed racist who attacked a New Zealand mosque conducting Friday prayers during an assault that killed 49 people opened fire with rifles covered in white-supremacist graffiti and listened to a song glorifying a Bosnian Serb war criminal
8:51AM ( 36 minutes ago )
Ethiopian Airlines says analysis of flight recorders begins
Ethiopian Airlines says flight recorder analysis begins; pilot called in emergency, NYT says
8:47AM ( 41 minutes ago )
Tokyo's Olympics may become known as the 'Robot Games'
Tokyo's Olympics may become known as the "Robot Games."
8:45AM ( 43 minutes ago )