Mainland China jumps on hopes of stimulus


AP and AFP

HONG KONG–Chinese stocks jumped Monday as grim trade figures raised expectations that Beijing would step up stimulus measures. Other global stock benchmarks were mostly lower.

Europe’s main stock markets fell, as Turkish shares slumped on political uncertainty in the country following elections, offsetting support for the alcoholic drinks and banking sectors. Markets were also tracking the latest developments surrounding Greece’s standoff with the European Union over its bailout repayments, as well as comments out of the Group of Seven summit in Germany. Frankfurt’s DAX 30 index slid 0.67 percent to stand at 11,121.78 points in afternoon deals and the CAC-40 in Paris shed 0.82 percent to 4,880.41. The UK’s benchmark FTSE 100 dipped 0.08 percent to 6,799.16 points compared with Friday’s close. Elsewhere, the Turkish lira plunged to a record low point against the U.S. dollar Monday, while Turkey’s main stocks index was down by about 6.0 percent. Futures augured a tepid start for Wall Street. S&P 500 futures were down 0.1 percent. Dow futures were unchanged. U.S. jobs figures increased the chances of a U.S. interest rate rise before the end of the year, which hit Wall Street and also overshadowed an upward revision of Japanese economic growth. The U.S. Labor Department said Friday the world’s biggest economy and key driver of global growth created 280,000 jobs in May. The figure was far better than forecast and follows a slow start to the year that saw a first-quarter economic contraction partly because of severe winter weather.

The report also showed better wage growth, in an indication of tightening in the jobs market. While the news suggests the recovery is back on track, it also gives the Fed more ammunition to start raising rates again, weighing on U.S. equities. Shanghai stocks ended at a seven-year high after another round of weak Chinese data fuelled hopes for fresh stimulus.