Asian Markets Rise Amid U.S. Gains and Oil Price Increases
In a day of mixed trading across Asia, shares mostly climbed on Tuesday as U.S. stock indexes inched closer to record highs. Futures for the S&P 500 and Dow Jones Industrial Average dipped by 0.3%, but the overall sentiment remained positive.
Chinese markets saw gains despite a report revealing a slowdown in manufacturing activity for May. The Caixin Purchasing Managers’ Index indicated declines in factory output, new export orders, and staffing levels, pointing to the toughest conditions for small and mid-sized exporters amid weak global demand and ongoing tariff tensions with the U.S. Despite the negative report, many investors speculated that it could lead to increased support measures from Beijing, causing Hong Kong’s Hang Seng index to surge 1.5% and the Shanghai Composite to rise 0.4%.
In Europe, early trading showed Germany’s DAX rising 0.3% and France’s CAC 40 gaining 0.2%, while the UK’s FTSE 100 experienced modest gains of less than 0.1%.
Political developments in Poland added to regional uncertainty as voters elected Karol Nawrocki, a nationalist historian, as president. Nawrocki has expressed support for Ukraine but is cautious about NATO membership and the long-term costs of aid.
Meanwhile, U.S. oil prices experienced further increases, with benchmark crude rising to $62.79 per barrel. This uptick coincided with a generally positive outlook from Wall Street, where indices closed higher on Monday, marking the best month for the S&P 500 since early 2023.
As the U.S. considers extending tariff exemptions on critical Chinese goods, a potential discussion between President Trump and Chinese leader Xi Jinping may also continue reshaping trade dynamics. However, concerns remain over U.S. government debt as tax cuts and deficit expansions loom.
Note: The image is for illustrative purposes only and is not the original image of the presented article.
