Latest news with #MarketRecovery
Zawya
16 hours ago
- Business
- Zawya
European shares rebound as worries of US involvement in Middle East ease
European shares rebounded on Friday after three sessions of declines, as a stall in the United States' involvement in the Middle East conflict came as a relief to worried investors. The pan-European STOXX 600 was up 0.4% at 537.98 points at 0708 GMT. The benchmark is on track to log weekly declines for a second week. Israel and Iran's air war entered a second week and European officials sought to draw Tehran back to the negotiating table after President Donald Trump said any decision on potential U.S. involvement would be made within two weeks. The news improved market mood and helped recover some interest in risk assets that were being sold off during the week on uncertainty around how long the conflict would go on. In the market, travel and leisure stocks gained the most, up 1.1%, as oil prices eased. Conversely, energy shares were at the bottom of the index with a 0.7% decline, trimming some gains from this week. Among stocks, London's Berkeley was the biggest percentage decliner, down 8%. The homebuilder named current finance chief Richard Stern as its new CEO, but reported an annual pre-tax profit slightly ahead of market expectations.
South China Morning Post
5 days ago
- Business
- South China Morning Post
Asian stocks in ‘foothills of recovery' as valuations appeal, fund manager says
Asian stocks, the laggards in global markets over the past three years, offer significant upside potential because of their attractive valuations, with the impacts of weak China growth and interest-rate spikes wearing off, according to a veteran fund adviser. Markets in China, Southeast Asia and some developed economies in Asia would reward investors over the long term, according to Richard Lawrence Jnr, founder of Overlook Investments in Hong Kong. Low ownership among global funds left plenty of room for stock gains, he added. 'We are early in the foothills of recovery,' he said in an email interview. 'Asian markets are trading at low valuations and being largely ignored by global investors. Such conditions typically set the stage for significant long-term returns.' Lawrence is the executive chairman of Overlook Investments, which he founded in 1991. His firm manages about US$7 billion of assets. He has four decades of experience in the region, witnessing turmoil like the Asian currency crisis in 1997, the Lehman Brothers' collapse in 2008 and the Covid-19 pandemic. An electronic board shows stock indices on a pedestrian bridge in Shanghai on April 8. Photo: Reuters Asian stocks trade at 16 times earnings on average, cheaper than the 21 times multiple investors are paying for global equities, according to Bloomberg data. Since 2022, the MSCI Asia-Pacific Index has risen 19 per cent, while the MSCI World Index climbed 44 per cent and the Nasdaq 100 index surged 78 per cent. The returns reflect the impacts of US interest-rate hikes in the US and China's economic slowdown, as well as policies powering US exceptionalism.
Japan Times
12-05-2025
- Business
- Japan Times
Japan's stocks advance on optimism U.S.-China trade tensions to ease
Japanese stocks rose, with the Topix heading for a 12-day rally, on optimism trade tensions between the U.S. and China may begin to deescalate after two days of talks over the weekend. The benchmark index climbed 0.3% to 2,740.91 as of 9:04 a.m. Tokyo time, set to complete its longest advance since October 2017. The Nikkei 225 Stock Average rose 0.4% to 37,646.88. Out of 1,689 stocks in the broader Topix, 1,115 rose and 411 fell, while 163 were unchanged. The U.S. and China both reported "substantial progress' after talks in Switzerland aimed at deescalating a trade war, though neither side announced specific measures. Chinese Vice Premier He Lifeng said the world's two biggest economies agreed to create a mechanism for further talks. "It's not yet clear what exactly is involved, so we'll have to wait and see what comes out going forward,' said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management. "The yen is weakening, and at the very least, there doesn't seem to be a negative market reaction. As we wait for specific announcements, the general trend of recovery is likely to continue.' Stay updated on the trade wars. Quality journalism is more crucial than ever. Help us get the story right. For a limited time, we're offering a discounted subscription plan. Unlimited access US$30 US$18 /mo FOREVER subscribe NOW Shares of Japanese drugmakers slumped after President Donald Trump said he plans to order a cut in U.S. prescription drug costs by mandating that Americans pay no more than people in countries that have the lowest price. Daiichi Sankyo dropped 3.2%, while Kissei Pharmaceutical fell 2.3%. The Nikkei 225 has climbed 5% through Friday since Trump announced so-called reciprocal tariffs on April 2, among the best performing major markets. Japan last month was one of the first countries to formally engage in talks with the U.S., though agreement is yet to be made. Prime Minister Shigeru Ishiba intends to reach a trade agreement with the U.S. in July, around the time of an Upper House election. Investors are also watching closely earnings results and outlook from Japanese companies, with firms including SoftBank Group, Nissan Motor and Sony Group scheduled to report this week. Chinese stocks, meanwhile, posted modest gains and the yuan strengthened on signs that trade tensions with the U.S. are thawing. The Hang Seng China Enterprises Index gained as much as 1.5%, while the CSI 300 Index rose as much as 0.6% during early trading on Monday. Both indexes are close to recouping their losses since Trump's "Liberation Day" announcement of tariffs on April 2. But investors and strategists say they will need more details about exactly what progress has been made in the U.S.-China talks before they become too bullish. "We do need to see details and that will allow investors to assess the size of the market impact moving forward,' said Nick Twidale, chief market analyst at AT Global Markets. Still, "the news over the weekend is very positive for Chinese markets in general."
