Global stocks rise on improved Chinese services data

BEIJING

Global stock markets and Wall Street futures advanced yesterday after the downturn in China’s service industries eased and news reports said the Biden administration might lift U.S. tariffs on some Chinese imports.

London and Frankfurt opened higher. Shanghai, Tokyo and Hong Kong advanced. Oil prices gained to stay close to $120 per barrel.

A survey showed activity in Chinese retailing and other service industries shrank in May but at a slower rate than the previous month. Meanwhile, The Wall Street Journal reported Washington planned to lift tariffs on Chinese-made solar panels and Commerce Secretary Gina Raimondo said President Joe Biden was “looking at” ending other duties.

“Some pockets of optimism may come from further easing of virus restrictions in Beijing,” Yeap Jun Rong of IG said in a report.

Government data showed U.S. employers added 390,000 jobs in May, beating expectations of 322,500.

In Asia, the Shanghai Composite Index rose 1.3 percent to 3,236.37 after the business news magazine Caixin said its monthly purchasing managers’ index for services rose to 41.4 from April’s 36.2 on a 100-point scale on which numbers below 50 show activity contracting.

The Hang Seng in Hong Kong gained 1.8 percent to 21,470.94 and the Nikkei 225 in Tokyo added 0.6 percent to 27,915.89. Korean markets were closed for a holiday.

Sydney’s S&P-ASX 200 shed 0.5 percent to 7,206.30. New Zealand markets were closed for a holiday.

Wall Street traders are uneasy about the possibility Federal Reserve interest rates aimed at cooling inflation that is running at a four-decade high might tip the U.S. economy into a recession.