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Shares of Didi Global Inc surged 48.6% in premarket trading
after a report that regulators were preparing as early as this
week to allow the ride-hailing firm's mobile app back on
domestic app stores.
Didi - which was hit by a cybersecurity investigation days after
its initial public offering in June 2021 - won shareholder
approval for a U.S. stock delisting last month.
Full Truck Alliance and Kanzhun Ltd, whose apps will also be
restored, climbed 22.9% and 20.6%, respectively. Shares of
JD.com Inc, Baidu and Alibaba Group, targets of China's
crackdown on its internet sector, advanced between 5.6% and
6.2%.
The upbeat mood was also underpinned by signs of Beijing and
Shanghai returning to normal life after China's biggest COVID-19
outbreak in two years.
"Expectation of a slightly more generous working environment for
tech in China is lifting sentiment. It is a symbol of Beijing
wanting to try and stimulate the economy," said Susannah
Streeter, senior investment and market analyst at Hargreaves
Lansdown.
"However, concerns about inflation are not going away. Oil
prices are climbing higher yet again and there are concerns that
the Fed (Federal Reserve) will be more aggressive in its
measures to try and rein in inflation because the labor market
is so buoyant."
U.S. stock indexes logged weekly losses on Friday as elevated
crude prices as well as a solid jobs report quashed hopes of a
pause in the Fed's aggressive policy-tightening plan to cool
decades-high inflation.
All eyes will be on the U.S. consumer price index report later
this week for more clues on the path of future interest rate
hikes. Signs that inflation remains strong could spook markets
already battered by worries that a hawkish Fed could tip the
economy into a recession.
Money markets are fully pricing in 50 basis point increases by
the U.S. central bank next week and in July.
At 7:23 a.m. ET, Dow e-minis were up 275 points, or 0.84%, S&P
500 e-minis were up 44.75 points, or 1.09%, and Nasdaq 100
e-minis were up 182.25 points, or 1.45%.
Market heavyweights Alphabet Inc, Microsoft Corp, Meta
Platforms, Apple Inc rose between 1.2% and 1.4%, while Tesla Inc
advanced 3.2% after a sharp drop last week.
Goldman Sachs advanced 1.1% to lead gains among the big banks.
The blue-chip Dow has fallen 9.5% so far this year, the
benchmark S&P 500 has lost 13.8%, and the tech-heavy Nasdaq has
shed 23.2%, as investors scrambled to adjust to tightening
financial conditions.
(Reporting by Medha Singh, Susan Mathew and Devik Jain in
Bengaluru, additional reporting by Tom Westbrook in Singapore;
editing by Uttaresh.V and Aditya Soni)
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