Asian stocks were mixed on Tuesday after reports showed China’s manufacturing slowdown is easing as anti-virus restrictions eased on companies in Shanghai and Beijing.
US futures rose after markets in New York closed for Memorial Day on Monday. European stocks rose on Monday.
Oil prices traded above $115 a barrel after an agreement by European Union leaders Embargo on most Russian oil Imports into the block by the end of the year.
The pact, which is part of new sanctions against Moscow, was drawn up at a summit focused on helping Ukraine with a long-delayed package of new financial support. The embargo affects Russian oil imported by sea and allows a temporary exemption for imports delivered by pipeline. That was crucial in getting landlocked Hungary on board a decision that required consensus.
Benchmark US crude rose $2.77 to $117.84 a barrel in electronic trading on the New York Mercantile Exchange. On Monday, the price rose 98 cents to $115.07 a barrel.
Brent crude, used as a price base for international trade, rose 76 cents to $118.38 a barrel.
China’s easing of antivirus restrictions on companies in Shanghai and Beijing has sparked hopes of stronger growth in the world’s second-largest economy.
An official survey showed that factory activity picked up in May, although still below the 50 level, indicating expansion on a scale of up to 100. The main manufacturing purchasing managers’ index, or PMI, rose to 49.6 from 47.4 in April.
“PMIs are likely underestimating the magnitude of the recovery this month as the majority of the surveys came ahead of the easing of most restrictions in Shanghai,” Capital Economics’ Sheana Yue said in a report. “We suspect the hard data due in the coming weeks will show a stronger recovery.”
More factories, shops and other businesses are built are allowed to reopen this week in Shanghai and the Chinese capital Beijing after authorities declared the outbreaks under control. The Shanghai municipal government promised rent and tax cuts, faster building permits and more subsidies for electric car purchases.
The Shanghai Composite Index rose 0.2% to 3,154.44 and Hong Kong’s Hang Seng rose 0.1% to 21,144.72.
Tokyo’s Nikkei 225 rose 0.1% to 27,404.14, while Seoul’s Kospi rose 0.1% to 2,672.33.
Australia’s S&P/ASX 200 lost 0.2% to 7,268.80. Stocks also fell in Taiwan.
Futures for Wall Street’s S&P 500 index were up 0.3% after Friday’s benchmark rose 6.6% for the week after rising inflation eased.
The future for the Dow Jones Industrial Average Future rose 0.1%.
Investors were relieved after Commerce Department data showed US inflation, prompting the Federal Reserve to hike interest rates. slowed to 6.3% over a year earlier in April, the first drop in 17 months.
However, concern remains whether the Fed can control inflation, which is at a four-decade high, without plunging the world’s largest economy into recession.
Crude oil prices are up 60% this year amid fears of supply disruptions from Russia, the world’s second largest exporter. Wheat prices are up about 50% and corn prices are up 30%.
The dollar rose to 128.09 Japanese yen late Monday from 127.55 yen. The euro fell from $1.0778 to $1.0747.
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https://www.local10.com/business/2022/05/31/asian-stocks-mixed-oil-prices-shoot-past-115/ Asian stocks mixed, oil prices shoot above $115