TOKYO—Global shares were higher Wednesday after reports on key measures of China manufacturing showed a strong recovery after anti-virus controls were lifted late last year.
France’s CAC 40 added 0.5 percent in early trading to 7,301.78. Germany’s DAX rose 0.5 percent to 15,422.23. Britain’s FTSE 100 rose 0.2 percent to 7,912.56. The future for the Dow Jones Industrial Average was 0.4 percent higher while that for the S&P 500 gained 0.3 percent.
Hong Kong’s Hang Seng index jumped 4.2 percent and Shanghai gained 1 percent after purchasing managers’ indexes issued by a business magazine, Caixin, and the China Federation of Logistics & Purchasing showed gains in production, exports, and new orders.
Business activity is recovering in China after the ruling Communist Party ended stringent anti-virus restrictions in early December. That followed a slump in activity that dragged last year’s economic growth to 3 percent, its second-lowest level since at least the 1970s.
It was good news in Hong Kong, where Hang Seng gained more than 830 points to 20,619.71.
Hong Kong’s own outlook has improved as it has relaxed pandemic precautions. The territory’s chief executive, John Lee, announced Tuesday that masks will no longer be required both outdoors and indoors, but some high-risk areas including hospitals and elderly homes can still require their use.
The Shanghai Composite added nearly 33 points to 3,312.35.
Japan’s benchmark Nikkei 225 picked up 0.3 percent to close at 27,516.53. Australia’s S&P/ASX 200 edged nearly 0.1 percent lower to 7,251.60. South Korean markets were closed for a national holiday.
Wall Street closed out a frigid February with more losses on Tuesday. The S&P 500 lost 0.3 percent, locking in a loss of 2.6 percent for the month. The Dow industrials fell 0.7 percent, while the Nasdaq edged 0.1 percent lower. Both also sank over the month.
After a strong start to the year driven by hopes inflation is abating, Wall Street shifted into reverse in February. A stream of data showed inflation and the overall economy are remaining more resilient than expected. That’s forced investors to raise their forecasts for how high the Federal Reserve will take interest rates and how long it will keep them there.
High rates can drive down inflation, but they also raise the risk of a recession down the line because they hurt the economy. They also drag on prices for stocks and other investments.
Reports on the economy released Tuesday showed some slight cracks. One said that confidence among U.S. consumers fell in February. Another said that manufacturing in the Chicago region weakened by more than expected.
Investors are keeping an eye on the last of the earnings reports for this season. Several big-name retailers are still on the schedule for this week.
In energy trading, benchmark U.S. crude added 39 cents to $77.44 in electronic trading on the New York Mercantile Exchange. Brent crude, the international pricing standard, rose 38 cents to $83.83 a barrel.
In currency trading, the U.S. dollar inched down to $135.80 Japanese yen from $136.20 yen. The euro rose to $1.0643 from $1.0583.
