TOKYO – Global stocks traded mixed on Wednesday as Japan’s benchmark index rose, but quickly lost steam on news that the prime minister will not seek re-election as head of the ruling party.
France’s CAC 40 rose 0.7% in early trading to 7,324.59, while Germany’s DAX rose 0.4% to 17,888.68. Britain’s FTSE 100 rose 0.6% to 8,280.28. US stocks were expected to rise, with Dow futures rising 0.1% to 39,927.00. S&P 500 futures remained largely unchanged at 5,458.50.
Japan’s benchmark Nikkei 225 index rose 0.6% to end at 36,442.43 after an up-and-down day. S of Australia&P/ASX 200 gained 0.3% to 7,850.70. South Korea’s Kospi added nearly 0.9% to 2,644.50. Hong Kong’s Hang Seng lost about 0.4% to 17,113.36, while the Shanghai Composite fell 0.6% to 2,850,656.
The Liberal Democratic Party, which governs Japan, controls a majority in the lower house of parliament, which chooses the country’s leader. Prime Minister Fumio Kishida’s public support ratings have fallen due to a scandal involving shady political fundraising as well as other issues.
“We must show that the Liberal Democratic Party will change. This will be the first step that will clearly demonstrate this,” Kishida said when announcing his decision.
Speculation is rife that the party will turn to a younger politician as its next leader, with Shinjiro Koizumi, son of former Prime Minister Junichiro Koizumi, among those in discussion. The younger Koizumi is still in his 40s, marking a departure from the elderly prime ministers of the past.
The overnight rise on Wall Street also boosted investor optimism.
A cautious mood remains in global markets due to uncertainty about the US economy. Next week brings a slew of economic data on Japan, including machinery orders, trade statistics, foreign traveler records, unemployment and consumer prices. Analysts believe that the Japanese economy remains largely on solid ground, thanks to the strong performance of some Japanese companies.
US stocks rose for one of the best days of the year after the first of several highly anticipated reports on the economy this week was better than expected.
Inflation in the US, which has been a concern for years, finally appears to be slowing down. This means that the US Federal Reserve will be able to ease high interest rates.
Investors are still keeping an eye on US government data on inflation, expected later in the day. A report showing how much US shoppers are spending at retailers will be released on Thursday.
The U.S. economy is still growing and many economists don’t expect a recession, but a sharp slowdown in U.S. hiring last month has raised questions about its strength.
In energy trading, benchmark U.S. crude rose 53 cents to $78.88 a barrel. Brent crude, the international standard, rose 51 cents to $81.20 a barrel.
In currency trading, the US dollar rose to 147.17 yen from 146.84 yen. The euro was priced at $1.1017, up from $1.0995.
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This story originally appeared on ABCNews.go.com read the full story
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