World shares mostly gain after Wall Street logs a 3rd straight winning
week
[July 21, 2025] By
ELAINE KURTENBACH
BANGKOK (AP) — Shares are mostly higher in key markets in Europe and
Asia after U.S. stocks logged their third straight winning week.
Markets were closed for a holiday in Japan, where the ruling Liberal
Democrats have lost their coalition majorities in both houses of
parliament for the first time since 1955 following Sunday’s upper house
election and the loss of their lower house majority in October.
Germany's DAX edged less than 0.1% higher to 24,229.41, while the CAC 40
in Paris slipped 0.2% to 7,804.80. Britain's FTSE 100 inched up less
than 0.1% to 8,999.29.
The futures for the S&P 500 and the Dow Jones Industrial Average were
0.3% higher.
In Japan, a grim Prime Minister Shigeru Ishiba has vowed to stay on
after the drubbing by voters frustrated over rising prices and political
instability. Analysts said they expect his weakened government to crank
up spending, adding to Japan's huge debt burden.
Japan is also facing the imposition of 25% tariffs across the board on
its exports to the U.S. as talks with the Trump administration appear to
have made little headway.
“We expect short-term political instability to intensify due to the
difficulties of forming a majority coalition, a likely change in
leadership, and a potential deadlock in trade negotiations,” Peter
Hoflich of BMI, a part of the Fitch Group, said in a commentary.
“Without a structural reset through snap elections, Japan is likely to
face prolonged policy drift throughout 2026,” he said.
Chinese shares advanced after the central bank kept its key 1-year and
5-year loan prime interest rates unchanged. Hong Kong's Hang Seng rose
0.7% to 24,994.14, while the Shanghai Composite index gained 0.7% to
3,559.79.
Recent improved economic data have eased pressure on the Chinese
leadership to soften credit. Meanwhile, President Donald Trump's
administration has softened its criticism of Beijing, raising hopes that
the two sides can work out a trade deal and avert the imposition of
sharply higher tariffs on imports from China.
South Korea's Kospi picked up 0.7% to 3,210.81 after the government
reported a slight improvement in exports in June.
In Australia, the S&P/ASX 200 shed 1% to 8,668.20, while Taiwan's Taiex
dropped 0.2%. In India, the Sensex rose 0.3%. Bangkok's SET gained 0.2%.
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A currency trader reacts near a screen showing the Korea Composite
Stock Price Index (KOSPI), left, and the foreign exchange rate
between U.S. dollar and South Korean won at the foreign exchange
dealing room of the Hana Bank headquarters in Seoul, South Korea,
Monday, July 21, 2025. (AP Photo/Ahn Young-joon)
 This week will bring updates on U.S.
home sales, jobless claims and manufacturing. Several Big Tech
companies including Alphabet and Tesla are due to provide earnings
reports.
On Friday, the S&P 500 handed back less than 1
point after setting an all-time high the day before. The Dow Jones
Industrial Average fell 0.3% and the Nasdaq composite edged up by
less than 0.1% to add its own record.
The heaviest weight on the market was Netflix, which fell 5.1%
despite reporting a stronger-than-expected profit.
Exxon Mobil sank 3.5% and also tugged on the market. It had been
challenging Chevron’s $53 billion deal to buy Hess, but an
arbitration ruling in Paris about Hess assets off Guyana’s coast
allowed the buyout to go through. Chevron fell 0.9% after losing an
early gain.
Treasury yields eased after a report suggested U.S. consumers may be
feeling less fearful about coming inflation. They’re bracing for
inflation of 4.4% in the year ahead, down from last month’s
projection of 5%, according to preliminary results from a University
of Michigan survey.
Prices may already be starting to feel the upward effects of
President Donald Trump' s higher tariffs, according to data released
last week.
The Trump administration is preparing to impose steeper import
duties on many countries as of Aug. 1, although some have worked out
deals to mitigate some of the damage.
In other trading early Monday, U.S. benchmark crude oil reversed
gains, shedding 32 cents to $65.73 per barrel. Brent crude, the
international standard, lost 37 cents to $68.91 per barrel.
The U.S. dollar fell to 147.88 Japanese yen from 147.98 yen. The
euro climbed to $1.1645 from $1.1629.
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