BEIJING (AP) — Global stock markets followed Wall Street higher Monday after unexpectedly strong U.S. jobs data helped to soothe investor worries after American factory weakened more than forecast in October.
London and Frankfurt opened higher while Shanghai, Hong Kong and Seoul also rose. Japanese markets were closed for a holiday.
The Labor Department said American employers added 128,000 jobs in October, better than the 89,000 forecast. That helped to dilute disappointment after the Institute for Supply Management, an industry group, said its manufacturing index fell for a third month and by a bigger margin than forecast.
The jobs numbers could help to reassure investors about American household spending, the main driver of the biggest global economy.
The U.S. data were “the icing on the cake” after the Federal Reserve cut interest rates and Washington and Beijing issued “encouraging statements” about their tariff battle, said Craig Erlam of Oanda in a report.
“Of course, we’ve had plenty of warm words before that have delivered very little but things seem to finally be moving,” said Erlam.
In early trading, London’s FTSE 100 rose 0.4% to 7,333.61 and Germany’s DAX advanced 0.7% to 13,047.67. France’s CAC 40 added 0.6% to 5,793.70.
On Wall Street, futures for the benchmark Standard & Poor’s 500 index and the Dow Jones Industrial Average rose 0.3%.
In Asia, the Shanghai Composite Index gained 0.6% to 2,975.49 and Hong Kong’s Hang Seng advanced 1.6% to 27,547.30. Seoul’s Kospi added 1.4% to 2,130.24.
Sydney’s S&P-ASX 200 added 0.3% to 6,686.90 and India’s Sensex rose 0.3% to 40,286.44. Taiwan, New Zealand and Southeast Asian markets also advanced.
On Friday, the S&P 500 rose 1% to an all-time high for the third time in a week.
The Dow and the Nasdaq composite both gained 1.1%.
Friday’s employment numbers helped to shore up investor faith that has been shaken by U.S.-China trade tension and Brexit.
The world’s largest economies have agreed to a truce in what President Donald Trump dubbed “phase one” of a trade deal. Envoys are negotiating the details, but economists caution major issues have yet to be decided.
U.S. companies are reporting weaker profits compared with a year ago as global economic activity and consumer demand weaken.
Britain’s departure from the European Union has been delayed until at least Jan. 31 after the other 27 member governments granted London’s request for a three-month extension.
Prime Minister Boris Johnson called an election after parliament blocked his plan to leave on Oct. 31 whether the two sides agreed in advanced on their future trade and other relations or not.
France’s minister for European affairs, Amelie de Montchalin, said she is advising French companies to prepare for a scenario in which Britain leaves without a divorce deal. She told broadcaster Europe 1 radio the new date of Jan. 31 “is not negotiable.”
ENERGY: Benchmark U.S. crude lost 17 cents to $56.03 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $2.22 on Friday to close at $56.20. Brent crude, used to price international oils, fell 19 cents to $61.50 per barrel in London. It surged $2.07 the previous session to $61.69.
CURRENCY: The dollar rose to 108.38 from Friday’s 108.18. The euro edged down to $1.1157 from $1.1168.