TOKYO (AP) — Global shares were mostly higher Tuesday after Wall Street rallied on the U.S. decision to give Chinese telecom giant Huawei another 90 days to buy equipment from American suppliers.
That decision appeared to inspire a buying mood among investors eager for any signs of progress in the trade war between the U.S. and China.
France’s CAC 40 added nearly 0.2% in early trading to 5,380.18, while Germany’s DAX inched up nearly 0.1% to 11,723.98. Britain’s FTSE 100 rose 0.2% to 7,205.60. U.S. shares were set to drift higher with Dow futures edging up 0.1% to 26,143. S&P 500 futures were also up 0.1% at 2,926.50.
Japan’s benchmark Nikkei 225 gained 0.6% to finish at 20,677.22. Australia’s S&P/ASX 200 added 1.2% to 6,545.00. South Korea’s Kospi rose 1.1% to 1,960.25, while Hong Kong’s Hang Seng lost 0.2% to 26,231.54. The Shanghai Composite was down 0.1% at 2,880.00.
Recently, investors have been trying to determine whether a recession is on the horizon in the U.S. A key concern is that the escalating and costly trade conflict between the world’s two biggest economies will hamper growth around the globe.
Earlier this month, Trump announced plans to extend tariffs across virtually all Chinese imports, many of them consumer products that were exempt from earlier rounds of tariffs. The tariffs have been delayed, but ultimately will raise costs for U.S. companies bringing goods in from China.
Huawei has become part of the trade war, with the White House showing a willingness to use sanctions against the company as a bargaining chip. The U.S. government blacklisted Huawei in May, deeming it a national security risk, meaning U.S. companies aren’t allowed to sell the company technology without government approval.
“While it is not unexpected, the extension for the easing of Huawei sanctions had added to the relief for markets at the start of the week,” said Jingyi Pan, market strategist for IG in Singapore.
Benchmark crude oil rose 14 cents to $56.28 a barrel. Brent crude, the international standard, rose 10 cents to $59.84 a barrel.
The dollar rose to 106.43 yen from 106.36 yen on Monday. The euro weakened to $1.1074 from $1.1104.