SALON

Tuesday, Mar 5, 2013 1:30 PM UTC

China announces budget, and world stocks climb

Markets in Europe and Asia were both positively affected

By

Topics: From the Wires, Wall Street, Asia, Europe, Bangkok, China, National People's Congress, ,

China announces budget, and world stocks climbA currency trader looks at the computer monitors at the foreign exchange dealing room of the Korea Exchange Bank headquarters in Seoul, South Korea.(Credit: AP/Lee Jin-man)

BANGKOK (AP) — World stock markets rose Tuesday as investors registered approval for China’s spending priorities announced at its annual congress.

Markets in Hong Kong and mainland China drew encouragement from a speech by outgoing Premier Wen Jiabao and presentation of the country’s budget at the opening of the annual National People’s Congress, a ceremonial legislature.

Wen promised deficit spending to meet a growth target this year of 7.5 percent that is enshrined in the ruling Communist Party’s latest five-year development plan. Wen mentioned subsidies for agriculture and energy conservation and said the country was committed to fighting corruption and improving the environment. Wen also pledged to relax the credit supply, analysts said.

“I think that is good news for the banks. Either they will increase their quota for new loans or reduce the deposit reserve ratio. So that means boosting the money supply to support economic growth,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong.

Lun also said he believes China’s leaders are aiming for something higher than the 7.5 percent growth target announced at the congress.

European stocks opened higher. Britain’s FTSE 100 rose 0.7 percent to 6,389.41. Germany’s DAX advanced 1.3 percent to 7,792.15 and France’s CAC-40 added 1.2 percent to 3,755.54. Wall Street was poised to open higher, with Dow Jones industrial futures rising 0.2 percent to 14,143 and S&P 500 futures advancing 0.2 percent to 1,528.10.

Earlier in Asia, Hong Kong’s Hang Seng rose 0.1 percent to 22,560.50. The mainland’s Shanghai Composite Index gained 2.3 percent to 2,326.31. The Shenzhen Composite Index added 2.3 percent to 964.68.

Stocks in Tokyo rose on hopes that the Bank of Japan, which begins a two-day meeting on Wednesday, might demonstrate a shift in monetary policy to conform to the program championed by new Prime Minister Shinzo Abe. The Nikkei 225 index advanced 0.3 percent to 11,683.45, its highest close since September 2008.

Australia’s S&P/ASX 200 gained 1.3 percent to 5,075.40 amid bargain-hunting after a sharp sell-off the day before.

Among individual stocks, Japan’s Fast Retailing jumped 5.5 percent after the company said sales at its Uniqlo casual clothing stores jumped 9.6 percent in February from a year ago, Kyodo News Agency said.

Wall Street stocks finished higher Monday as investors put aside the uncertainty over a budget battle in Washington. President Barack Obama and his political opponents have failed so far to agree on a way to roll back automatic spending cuts that took effect Friday. Those cuts slash $85 billion from the nation’s budget, which could slow down the economy.

Benchmark oil for April delivery was up 47 cents to $90.60 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 56 cents to finish at $90.12 a barrel on the Nymex on Monday.

In currencies, the euro rose to $1.3060 from $1.3022 late Monday in New York. The dollar fell to 93.01 yen from 93.42 yen.

___

Follow Pamela Sampson on Twitter at http://twitter.com/pamelasampson

Pamela Sampson

More Pamela Sampson.

Next Article

You Might Also Like

More Related Stories

Featured Slide Shows

Gripping photos: The people of the Turkey protests (slideshow)

close X
  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 11
  • The protests take on a festive element as police forces move out of the park and square. Wearing a gas mask, this young man dances to traditional Turkish music in front of Taksim Square’s Ataturk Monument.

  • In Gezi Park since March 31st, this protester, originally caught off-guard by the Government’s teargas and water cannons, went out and bought a Russian army mask from WWII, preparing for what was to come.

  • This rambunctious boy seems to be enjoying the chaos. After taking this picture he threw a stone at the already destroyed building in the background.

  • Forming a line, the police face off directly with protesters in Taksim Square. After a while, they retreated and there was a general cheer – a back-and-forth dance that has been common since the beginning of this protest.

  • An elderly woman in Gezi Park reads the news. The tent community occupying the park was violently destroyed on June 16th.

  • Many different groups had set up booths to promote their cause in Taksim Square and Gezi Park. Standing in front of one, this man waves his flag while posing with conviction.

  • Many home-remedies are used to minimize the effects of tear gas. This woman has put a milky solution on her face, removing her mask after the tear gas dissipated. Before sunrise, the police came again for another round of teargasing.

  • People capitalize on the uprising -- selling flags, beer, gas masks, sky lanterns and spray paint to name just a few of the popular items.

  • On Monday morning, June 11, the police execute a strong offensive. Many plain-clothed police officers, like the ones seen here, clash with protesters in the side streets away from the main stand-off in Taksim.

  • The authorities seem to be most aggressive in the night, pushing protesters away from the square and park. After being teargassed this young woman catches her breath with other protesters on Siraselviler Street.

  • Recent Slide Shows

  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 11

Related Videos

More Related Stories

Comments

 2 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>

follow salon

Most Read

Popular on Reddit

links from salon.com

From Around the Web

Presented by Scribol
listener_new_rect The Listener: "We Are All Completely Beside Ourselves": Growing up primate

Recommendations