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Asian shares gain following reassurances from China on yuan | Asian shares gain following reassurances from China on yuan |
(about 3 hours later) | |
MANILA, Philippines — Asian shares were mostly higher Friday after China’s central bank governor pledged not to devalue the yuan for the sake of export competitiveness. But gains were limited as oil prices fell back and G20 financial leaders meeting in Shanghai offered mixed messages over the potential for new stimulus to stave off the risk of recession. | |
KEEPING SCORE: Japan’s Nikkei 225 rose 0.3 percent to 16,188.41 while Hong Kong’s Hang Seng index climbed 1.6 percent to 19,186.72. Australia’s S&P/ASX 200 closed nearly flat at 4,945.10. The Shanghai Composite Index rose 1.2 percent to 2,774.09 after plunging 6.4 percent Thursday. South Korea’s Kospi rose 0.1 percent to 1,920.16. Markets in Southeast Asia rose and Taiwan was higher. | |
CHINA CURRENCY: Zhou Xiaochuan, governor of China’s central bank, told a conference on the sidelines of a meeting of financial leaders of the Group of 20 industrial nations that Beijing would not engage in devaluations for the sake of its export competitiveness. Zhou urged that the gathering focus on managing lackluster global demand, structural economic reforms and promoting “sustainable and balanced” growth. | CHINA CURRENCY: Zhou Xiaochuan, governor of China’s central bank, told a conference on the sidelines of a meeting of financial leaders of the Group of 20 industrial nations that Beijing would not engage in devaluations for the sake of its export competitiveness. Zhou urged that the gathering focus on managing lackluster global demand, structural economic reforms and promoting “sustainable and balanced” growth. |
ANALYST VIEWPOINT: “Taken alongside Ministry of Finance proposals that China can afford a fiscal deficit of 4 percent of GDP, further stimulatory support does look forthcoming in 2016,” Angus Nicholson of IG said in a commentary. “However, Zhou Xiaochuan is unlikely to be able to abide by all his statements today, at least if we take them at face value.” | |
G20 FINANCE AGENDA: Finance ministers and central bankers of the G20 rich and developing economies were seeking to douse hopes a two-day meeting in Shanghai that began Friday will produce specific growth plans similar to those rolled out in 2009 in response to the global crisis. Instead, many were urging faster progress on pro-growth structural reforms instead of relying on monetary and fiscal policy to boost growth. | |
WALL STREET GAINS: A late-day surge pushed U.S. stocks sharply higher Thursday, propelled by a recovery in energy companies and bank stocks, which have been hit hard this year. The Dow Jones industrial average rose 212.30 points, or 1.3 percent, to close at 16,697.29. The Standard & Poor’s 500 index rose 21.90 points, or 1.1 percent, to close at 1,951.70 and the Nasdaq composite rose 39.60 points, or 0.9 percent, to close at 4,582.20. | WALL STREET GAINS: A late-day surge pushed U.S. stocks sharply higher Thursday, propelled by a recovery in energy companies and bank stocks, which have been hit hard this year. The Dow Jones industrial average rose 212.30 points, or 1.3 percent, to close at 16,697.29. The Standard & Poor’s 500 index rose 21.90 points, or 1.1 percent, to close at 1,951.70 and the Nasdaq composite rose 39.60 points, or 0.9 percent, to close at 4,582.20. |
OIL: U.S. crude shed 1 cent to $33.06 a barrel in electronic trading on the New York Mercantile Exchange. It closed up 92 cents or nearly 3 percent to $33.07 a barrel on Thursday. Brent crude oil, the global benchmark, fell 11 cents to $35.59 a barrel. On Thursday, it rose 63 cents to $35.70 a barrel. | |
CURRENCIES: The dollar rose to 112.66 yen from 112.30 in the previous day’s trading. The euro climbed to $1.1055 from $1.1020. | |
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. | Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |