Global stock markets rise as political shift in South Korea and US tariff hopes boost sentiment
Stocks advanced across Europe and Asia on Wednesday, tracking gains on Wall Street as optimism grew around easing trade tensions and political developments in South Korea. US futures also pointed higher, with investors eyeing key economic data later in the week.
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In Europe, Germany's DAX climbed 0.9 per cent to 24,309.65, while France's CAC 40 rose 0.7 per cent to 7,819.43. The UK's FTSE 100 edged up 0.1 per cent to 8,798.65. Futures for the S&P 500 and the Dow Jones Industrial Average each advanced 0.2 per cent in early trading.
In Asia, South Korea's Kospi led regional gains, surging 2.7 per cent to 2,770.84, after liberal opposition candidate Lee Jae-myung was elected president.
Lee's win follows a turbulent political period that saw the ousting of conservative leader Yoon Suk Yeol after a controversial but short-lived imposition of martial law, according to an AP report.
'Regardless of his political roots, boosting growth will be a key challenge. Even before President Trump's tariffs hit exports, the economy contracted by 0.2 per cent quarter on quarter, seasonally adjusted, in the first three months of the year.
The figures highlighted fragile business activity and private consumption,' said Min Joo Kang of ING Economics in a report.
Japan's Nikkei 225 added 0.8 per cent to 37,747.45, supported by gains in technology and pharmaceutical shares. Toyota Motor Corp rose 1.9 per cent after announcing plans to acquire Toyota Industries Corp—a key supplier of auto parts and lift trucks—for USD 33 billion, taking the company private.
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However, shares of Toyota Industries tumbled nearly 12 per cent.
Chinese markets posted modest gains, with Hong Kong's Hang Seng up 0.6 per cent at 23,654.03, and the Shanghai Composite Index rising 0.4 per cent to 3,376.20. In Australia, the S&P/ASX 200 closed 0.9 per cent higher at 8,541.80, while Taiwan's Taiex jumped 2.3 per cent.
Investor focus remained on the unfolding US trade policy, particularly around former President Donald Trump's tariffs.
New 50 per cent tariffs on steel and aluminum imports were set to take effect Wednesday. With domestic industries lobbying for broader protection on downstream products, analysts warned that prices for many basic goods could climb.
On Tuesday, the S&P 500 rose 0.6 per cent, now less than 3 per cent from its all-time high. The Dow Jones Industrial Average added 0.5 per cent, and the Nasdaq Composite climbed 0.8 per cent.
Among standout gainers, Dollar General surged 15.8 per cent after posting stronger-than-expected profit and revenue for the start of the year. The rally was supported by signs of a resilient US labour market. A report showed that job openings at the end of April exceeded economists' expectations, setting the stage for Friday's crucial non-farm payrolls report.
Technology stocks also led gains. Nvidia rose 2.9 per cent, and Broadcom advanced 3.3 per cent, continuing a rebound from earlier losses this year triggered by valuation concerns.
Treasury yields remained relatively stable after the encouraging jobs data. This pause follows two months of sharp increases, fueled in part by concerns over growing US debt levels amid potential tax cuts. Higher yields typically increase borrowing costs and can weigh on equity valuations.
In commodity markets, US benchmark crude edged up 1 cent to USD 63.42 per barrel. Brent crude, the international benchmark, gained 4 cents to USD 65.67 per barrel.
In currency trading, the US dollar slipped to 143.88 Japanese yen from 144.00 yen, while the euro rose to USD 1.1404 from USD 1.1370.
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