Stocks open higher on Wall Street, continuing strong streak
Stocks are opening higher on Wall Street Monday, continuing a strong streak that gave the market its best weekly gain since November last week
TOKYO — Stocks are opening higher on Wall Street Monday, continuing a strong streak that gave the market its best weekly gain since November last week. The S&P 500 was up 0.5% in the early going. Small-company stocks continued to far outpace the rest of the market, as they have done over the past several weeks. That’s a sign investors are feeling optimistic about the economy. In another sign of optimism, Treasury yields continued to push higher. Tesla rose after saying it has acquired more than $1.5 billion in Bitcoin and would eventually accept the digital currency as payment for its electric vehicles.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
TOKYO (AP) — Global shares mostly rose Monday, echoing the rally on Wall Street last week, with Japan’s benchmark reaching a three-decade high on growing optimism over the global economy.
France’s CAC 40 added 0.5% in early trading to 5,688.63, while Germany’s DAX added 0.7% to 14,153.47. Britain’s FTSE 100 rose 0.3% to 6,509.92. U.S. shares were set to drift higher with Dow futures rising 0.2% to 31,117. S&P 500 futures were also up 0.2% at 3,889.75.
Japan’s Nikkei 225 surged 2.1% to finish at 29,388.50. Australia’s S&P/ASX 200 rose 0.6% to 6,880.70. South Korea’s Kospi shed 0.9% to 3,091.24. Hong Kong’s Hang Seng edged up 0.1% to 29,319.47, while the Shanghai Composite picked up 1.0% to 3,532.45.
Analysts expect the world economy to grow this year after contracting last year because of the pandemic. Export-driven Asian nations, such as Japan, South Korea and China, are expected to get a big boost out of the recovery.
Investors have been encouraged by surprisingly good corporate earnings reports, news that a recent surge in new coronavirus cases is easing, and progress in the distribution of vaccines.
In Asia, some companies have been slammed by the effects of border controls and remote working over COVID-19. But others have been big gainers, such as Japanese video-game company Nintendo Co. People stuck at home have turned in droves to Nintendo games, and the company, which has struggled at times, appears to be headed toward a record profit for the year.
Venkateswaran Lavanya of the Asia & Oceania Treasury Department at Mizuho Bank noted that euphoria was mixing with reality checks about vaccines slowly being delivered around the world.
“South Korea is relaxing social distancing measures, while Japan is considering lifting the emergency in certain prefectures if the situation improves,” Lavanya said of the other positive developments for the economy.
“Against this backdrop, the Japanese stock market is set to close at its highest since 1991,” she said.
Investors are focused on the prospects for more stimulus. President Joe Biden urged Democratic lawmakers this week to “act fast” on his economic stimulus plan.
In energy trading, benchmark U.S. crude rose 69 cents to $57.54 a barrel in electronic trading on the New York Mercantile Exchange. It gained 62 cents on Friday to $56.85 per barrel. Brent crude, the international standard, added 71 cents to $60.05 a barrel.
In currencies, the U.S. dollar rose to 105.48 Japanese yen from 105.37 yen. The euro cost $1.2045, inching up from $1.2042.
