Global shares rise as China says it's considering US overtures on
Trump's tariffs
[May 02, 2025] By
JIANG JUNZHE
HONG KONG (AP) — Global markets advanced Friday after China’s Commerce
Ministry said Beijing is evaluating overtures from the U.S. regarding
President Donald Trump’s tariffs.
The future for the S&P 500 gained 0.5% while that for the Dow Jones
Industrial Average added 0.6%.
Germany's DAX advanced 1.5% to 22,831.50 and the CAC 40 in Paris climbed
1.3% to 7,695.70.
British FTSE 100 was 0.7% higher at 8,558.56.
In Asian trading, Hong Kong's Hang Seng surged 1.7% to 22,504.68 while
markets in Shanghai were closed for a public holiday. Taiwan's benchmark
jumped 2.7%.
An unnamed Chinese Commerce Ministry spokesperson was cited as saying
that Beijing had taken note of various statements by senior U.S.
officials indicating a willingness to negotiate over tariffs.
“At the same time, the U.S. has recently taken the initiative to convey
information to the Chinese side on a number of occasions through
relevant parties, hoping to talk with the Chinese side. In this regard,
the Chinese side is making an assessment,” it said.
Tokyo's Nikkei 225 picked up 1% to 36,830.69.
Japanese Finance Minister Katsunobu Kato drew attention by mentioning
that the country's more than $1.1 trillion in U.S. Treasury bonds could
potentially be a “card on the table” in negotiations with Washington
over Trump's steep tariffs on autos and other imports.
Elsewhere in Asia, South Korea's Kospi rose 0.1% to 2,558.84 and
Australia's S&P/ASX 200 added 1.1%, closing at 8,238.00.
On Thursday, Microsoft and Meta Platforms led Wall Street higher after
they reported profits for the start of the year that were even bigger
than analysts expected.
The S&P 500 rose 0.6% for an eighth straight gain, its longest winning
streak since August.
The Dow Jones Industrial Average added 0.2% and the Nasdaq composite
climbed 1.5%.
Microsoft rallied 7.6% after the software giant said strength in its
cloud computing and artificial intelligence businesses drove its overall
revenue up 13% from a year earlier.
Meta, the parent company of Facebook and Instagram, also topped
analysts’ targets for revenue and profit in the latest quarter. It said
AI tools helped boost its advertising revenue, and its stock climbed
4.2%.
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Specialist James Denaro works at his post on the floor of the New
York Stock Exchange, Thursday, May 1, 2025. (AP Photo/Richard Drew)
 Plenty of uncertainty remains about
whether President Donald Trump’s trade war will force the economy
into a recession.
General Motors slipped 0.4% after it cut its forecast for profit in
2025, for example. It said it’s assuming it will feel a hit of $4
billion to $5 billion because of tariffs, and it expects to offset
at least 30% of it.
McDonald’s fell 1.9% after reporting weaker revenue for the latest
quarter than analysts expected, even though its profit was slightly
above forecasts.
McDonald’s joined Chipotle and other restaurant chains that have
seen customers grow cautious about the economy and inflation.
Consumer surveys show pessimism is shooting higher about where the
economy heading. On Thursday, a couple reports about the economy
came in mixed, following up on several recent updates that suggested
it’s weakening.
The first of the reports said more U.S. workers filed for
unemployment benefits last week than economists had forecast,
setting the stage for a more comprehensive report on the job market
arriving Friday.
The fear on Wall Street is for a possible worst-case scenario called
“stagflation,” where the economy stagnates yet inflation remains
high. The Federal Reserve has no good tools to fix both such
problems at the same time. If the Fed were to try to help one
problem by adjusting interest rates, it would likely make the other
worse.
Hopes that Trump may eventually roll back some of his tariffs after
reaching trade deals with other countries has helped to support
markets this week.
In other dealings early Friday, U.S. benchmark crude oil lost 26
cents to $58.98 per barrel. Brent crude, the international standard,
shed 24 cents to $61.89 per barrel.
The U.S. dollar slid to 144.88 Japanese yen from 145.40 yen. The
euro rose to $1.1335 from $1.1292.
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