Breather for global stocks
At the meeting in Turkey, Ukraine's delegation laid out a framework to declare it neutral, The Russian deputy defence minister, Alexander Fomin, said Moscow would cut back military activity near Kyiv and Chernihiv, but gave no details
Beijing: Asian stock markets followed Wall Street higher on Wednesday as talks on ending Russia's war on Ukraine appeared to make progress.
Shanghai, Hong Kong and Sydney advanced. Tokyo declined. Oil prices advanced less than $1 per barrel. That followed Russia's announcement it would scale back military operations near Ukraine's capital, Kyiv, and another northern city. It came as negotiators meeting in Turkey began to lay out a possible deal to end the five-week-old war.
"This was a nice add-on catalyst" to a market rally already under way, Clifford Bennett of ACY Securities said in a report. The Shanghai Composite Index rose 1.7 per cent to 3,258.22, rebounding from the previous day's loss after Shanghai, China's most populous city, closed most businesses to fight corona virus outbreaks.
The Nikkei 225 in Tokyo fell 1.1 per cent to 27,926.57 after the government reported February retail sales declined by a bigger-than-forecast 0.8 per cent. That left retail spending down 2 per cent from its November peak. The Hang Seng in Hong Kong gained 1.3 per cent to 22,210.14 and the Kospi in Seoul added 0.2 per cent to 2,746.20. Sydney's S&P-ASX 200 advanced 0.7 per cent to 7,514.50.
India's Sensex opened up 1.1 per cent to 58,570.98. New Zealand and Southeast Asian markets also rose. Russian President Vladimir Putin's February 24 attack on neighbouring Ukraine rattled global markets that already were on edge about higher US interest rates and a Chinese economic slowdown.
At the meeting in Turkey, Ukraine's delegation laid out a framework under which the country would declare itself neutral and its security would be guaranteed by an array of other nations. The Russian deputy defence minister, Alexander Fomin, said Moscow would "cut back military activity" near Kyiv and Chernihiv but gave no details. President Joe Biden said he wasn't convinced that would lead to a fundamental shift in the war.
On Wall Street, the benchmark S&P 500 index rose 1.2 per cent to 4,631.60 for its fourth straight daily gain. The Dow Jones Industrial Average advanced 1 per cent to 35,294.19.
The Nasdaq composite added 1.8 per cent to 14,619.64. More than 85 per cent of the stocks in the S&P 500 rose. Tech and communication stocks helped power the rally, along with big retail chains, automakers and other companies that rely on consumer spending. Apple rose 1.9 per cent and Netflix added 3.5 per cent. Ford Motor climbed 6.5 per cent and General Motors gained 4.6 per cent.
