Arizona Tribune - Stock markets rise on China support measures, earnings results

Hong Kong and Shanghai had been among the world's worst-performing markets in 2024 as traders fret over ongoing weakness in the Chinese economy, the world's second largest.

"The sun broke through dark clouds today on China's Shanghai Composite," said Briefing.com analyst Patrick O'Hare.

China's leadership has become increasingly worried about the sell-off, which has wiped trillions off valuations, and has unveiled a string of measures to try to staunch the rout.

Hong Kong closed up 4.0 percent, helped by a surge in heavyweight tech firms including Alibaba, JD.com and XD Inc.

The surge came after Central Huijin Investment, the unit that holds Chinese government stakes in big financial institutions, said it would increase investments in funds.

That was followed by the China Securities Regulatory Commission saying it would urge more action from long-term funds and call on listed firms to ramp up repurchase.

"A huge rebound in China seems to be giving risk some lustre... as Beijing upped the ante on its efforts to stabilise the market ahead of the lunar new year holiday," said Neil Wilson, chief market analyst at Finalto trading group.

"Authorities are stepping in after a wave of selling sent shares in mainland China to multi-year lows."

Analysts have warned that while such moves could provide some short-term relief, the government needed to address long-standing problems within the economy -- particularly the property sector -- to restore confidence.

Investors were also tracking a slew of company results.

Wall Street indices were higher in early deals, with Palantir Technologies soaring 27 percent and music streaming service Spotify gaining more than eight percent following upbeat earnings reports.

European stock markets were also up in afternoon deals.

In London, BP shot to the top of the benchmark FTSE 100 index after the British energy group ramped up its dividend and said it would repurchase a large amount of shares in the wake of bumper annual profits.

BP shares were up more than five percent in afternoon deals.

Shares in Swiss banking giant UBS fell, however, as it reported another quarterly loss and plans for more cost savings following its takeover of fallen rival Credit Suisse.

Despite the loss, the bank said it would hand shareholders up to $1 billion in share buybacks and raise dividends.

Investors were also still coming to terms with the prospect of US interest rates being kept at two-decade highs longer than hoped after a forecast-busting jobs report last week and a warning from Federal Reserve boss Jerome Powell that an imminent cut was unlikely.

While inflation continues to come down, central bank officials have been reticent about pushing for a reduction in borrowing costs as other indicators showing the economy remains resilient.

More Fed officials were due to speak on Wednesday.

- Key figures around 1450 GMT -

New York - Dow: UP 0.3 percent at 38,498.97 points

New York - S&P 500: UP 0.1 percent at 4,949.49

New York - Nasdaq Composite: FLAT at 15,603.40

London - FTSE 100: UP 0.7 percent at 7,669.00

Paris - CAC 40: UP 0.6 percent at 7,632.05

Frankfurt - DAX: UP 0.5 percent at 16,988.88

EURO STOXX 50: UP 0.1 percent at 4,660.53

Tokyo - Nikkei 225: DOWN 0.5 percent at 36,160.66 (close)

Hong Kong - Hang Seng Index: UP 4.0 percent at 16,136.87 (close)

Shanghai - Composite: UP 3.2 percent at 2,789.49 (close)

Dollar/yen: DOWN at 148.46 yen from 148.68 yen on Monday

Euro/dollar: DOWN at $1.0743 from $1.0745

Pound/dollar: UP at $1.2578 from $1.2536

Euro/pound: DOWN at 85.42 pence from 85.68 pence

West Texas Intermediate: UP 0.9 percent at $73.43 per barrel

Brent North Sea Crude: UP 0.8 percent at $78.60 per barrel

burs-lth/cw

A.Ruiz--AT