TOKYO (AP) — Global shares were mostly higher in muted trading Wednesday as investors awaited a slew of earnings reports to assess how companies have been affected by U.S. President Donald Trump’s tariffs.
France's CAC 40 added 0.2% in early trading to 7,638.46. Germany's DAX edged up 0.2% to 23,902.83. Britain's FTSE 100 gained 0.3% to 9,166.47. The future for the S&P 500 was up 0.2% while that for the Dow Jones Industrial Average gained 0.4%.
Among Japanese companies reporting financial results on Wednesday,
automaker Honda Motor Co. said its profit declined to about half the level of a year earlier despite strong sales in North America. Toyota Motor Corp. and electronics and entertainment company Sony Corp. report their results later this week.
In Asian trading, Japan's benchmark Nikkei 225 rose 0.6% to finish at 40,794.86. Australia's S&P/ASX 200 added 0.8% to 8,843.70. South Korea's Kospi was little changed, gaining less than 0.1% to 3,198.14.
Hong Kong's Hang Seng rose less than 0.1% to 24,910.63, while the Shanghai Composite gained 0.5% to 3,633.99.
On Tuesday, the S&P 500 fell 0.5% and the Dow industrials lost 0.1%. The Nasdaq composite fell 0.7%.
A weaker-than-expected report on activity for U.S. businesses in services industries like transportation and retail has added to worries that Trump’s tariffs may be hurting the U.S. economy. But conversely, such indicators raise hopes the Federal Reserve may cut interest rates.
The pressure is on companies to report bigger profits after the U.S. stock market surged to record after record from a low point in April. The big rally fueled criticism that the broad market had become too expensive.
For stock prices to look like better bargains, companies could produce bigger profits, or interest rates could fall. The latter may happen in September, when the Fed has its next policy meeting.
Expectations have built sharply for a rate cut at that meeting since a report on the U.S. job market on Friday came in much weaker than economists expected. Lower interest rates would make stocks look less expensive, while also giving the overall economy a boost. The potential downside is that they could push inflation higher.
In energy trading, benchmark U.S. crude rose $1.14 to $66.30 a barrel. Brent crude, the international standard, added $1.15 to $68.79 a barrel.
In currency trading, the U.S. dollar slipped to 147.59 Japanese yen from 147.61 yen. The euro cost $1.1606, up from $1.1579.
