Global Shares Mostly Higher as Markets Eye China Meeting

TOKYO—Global shares were mostly higher Monday as investors kept their eyes on a weeklong Communist Party congress in China.

France’s CAC 40 added 0.5 percent in early trading to 5,961.27. Germany’s DAX gained 0.5 percent to 12,498.72. Britain’s FTSE 100 rose 0.5 percent to 6,894.84. The future for the Dow industrials was up 0.7 percent, while the contract for the S&P 500 gained 0.9 percent.

Britain’s new Treasury chief was due Monday to announce details of his tax and spending plans Monday, two weeks ahead of schedule, in a bid to calm markets roiled by the government’s economic policies.

Chancellor of the Exchequer Jeremy Hunt was expected to ditch more of the measures announced by the government of Prime Minister Liz Truss on Sept. 23. Since then, the prime minister’s libertarian economic policies have triggered a financial crisis, emergency central bank intervention, multiple U-turns and the firing of her Treasury chief.

In Asia, the meeting of China’s ruling Communist Party opened Sunday and is expected to reappoint Xi Jinping as leader for the next five years. Analysts expect the meeting will reaffirm Xi’s his grip on power and stronger state control over the economy. They expect no change to Beijing’s “zero-COVID policy.”

Japan’s benchmark Nikkei 225 slipped 1.2 percent to finish at 26,775.79. Australia’s S&P/ASX 200 dipped 1.4 percent to 6,664.40. South Korea’s Kospi rebounded to gain 0.3 percent to 2,219.71. Hong Kong’s Hang Seng rose 0.5 percent to 16,662.19, while the Shanghai Composite rose 0.4 percent to 3,084.94. In Mumbai, the Sensex gained 0.8 percent.

In currency trading, the U.S. dollar rose to 148.64 Japanese yen from 148.63 yen. That’s a nearly 32-year low for the yen against the dollar.

Clifford Bennett, Chief Economist at ACY Securities, noted the U.S. dollar will likely continue to rise as interest rates are pushed higher to counter inflation. That’s a hardship for countries facing steep increases in costs for imports and for debt repayments.

“The outlook is grim. The economic horizon is dark,” he said of the American economy. “The U.S. dollar will continue to strengthen for the moment, particularly against other Western currencies.”

The euro cost 97.47 cents, up from 97.21 cents.

Japan’s industrial production for August showed moderate signs of improvement, the government said. Industrial production rose 3.4 percent from the previous month, and 5.8 percent from the previous year, according to Ministry of Economy, Trade and Industry data released Monday.

Worries about inflation, though cooling in some parts of the economy around the world, remain overall. A report last week showing U.S. consumers’ expectations for inflation was another signal the Federal Reserve may keep aggressively raising interest rates, although that strategy raises the risks of a recession.

The Fed has already raised its benchmark interest rate five times this year, with the last three increases by three-quarters of a percentage point. Wall Street expects another raise of three-quarters of a percentage point at its next meeting in November.

In energy trading, benchmark U.S. crude added 95 cents to $86.56 a barrel in electronic trading on the New York Mercantile Exchange. U.S. crude oil prices fell 3.9 percent on Friday. Brent crude, the international standard, added $1.05 to $92.68 a barrel.

By Yuri Kageyama