Global stocks mixed after tech recovery, China data

By , on December 1, 2017


(ShutterStock image)
An agreement among key crude exporting countries to extend oil production cuts boosted sentiment (ShutterStock photo)

SEOUL, Korea, Republic Of — Global stocks were mixed on Friday after a technology stocks recovered from heavy selling the day before. An agreement among key crude exporting countries to extend oil production cuts boosted sentiment but weak China factory data tempered appetite for risk.

KEEPING SCORE: Europe opened weaker with Britain’s FTSE 100 dipping 0.2 per cent to 7,310.50. France’s CAC 40 dropped 0.7 per cent to 5,335.19 while Germany’s DAX lost 0.8 per cent to 12,921.98. Futures indicated a weak start on Wall Street with Dow futures down 0.2 per cent. S&P futures retreated 0.3 per cent.

ASIA’S DAY: Asian stocks mostly finished with modest gains. Japan’s Nikkei 225 rose 0.4 per cent to 22,819.03 while South Korea’s Kospi fell less than 0.1 per cent to 2,475.41. But Hong Kong’s Hang Seng index slipped 0.4 per cent to 29,074.24 and China’s Shanghai Composite Index finished flat at 3,317.62. Australia’s S&P/ASX 200 gained 0.3 per cent to 5,989.80. Stocks in Southeast Asia were mostly higher.

ANALYST’S TAKE: “The recovery in technology stocks looks set to ignite a rebound for Asian equities into the end of the week,” said Jingyi Pan, a market strategist at IG in Singapore.

TECH STOCKS: Following an overnight recovery of technology stocks on Wall Street, investors picked up Asian tech stocks a day after their pull back. Taiwan Semiconductor Manufacturing Co., or TSMC, rose 2.2 per cent. SK Hynix rose 0.8 per cent while Samsung Electronics gained 0.1 per cent. LG Electronics jumped 3.9 per cent.

CHINA DATA: In China, the latest Caixin purchasing managers’ index showed that factory activity fell to its lowest level in five months in November while confidence about the business outlook also dropped. The indicator that shows a snapshot of operating conditions in China’s manufacturing economy registered 50.8 last month, down from 51.0 in October.

OIL: Crude oil prices gained after OPEC and a group of allied oil-producing nations agreed to extend crude output cuts until the end of next year. Benchmark U.S. crude added 29 cents to $57.69 per barrel on the New York Mercantile Exchange. The contract finished at $57.40 per barrel on Thursday, up 10 cents. Brent crude, used to price international oils, gained 33 cents to $62.96 per barrel in London. It finished at $62.63 a barrel, up 10 cents in the previous day.

CURRENCIES: The dollar weakened to 112.39 yen from 112.54 yen while the euro rose slightly to $1.1920 from $1.1904.