Global stocks mixed after Wall Street record on trade truce

BEIJING (AP) — Global stock markets were mixed Tuesday after Wall Street's benchmark hit a new high following the latest truce in the costly U.S.-Chinese trade war.

London and Tokyo rose, while Germany declined and Shanghai was unchanged. Hong Kong advanced despite protests over a proposed extradition law that led to police using tear gas to clear streets.

Investors were encouraged by the agreement between Presidents Donald Trump and Xi Jinping of China at a weekend meeting of the Group of 20 major economies to resume trade negotiations. Forecasters warned, however, the two sides still face the same differences that caused talks to break down in May.

Also Monday, the Trump administration ratcheted up tensions with the European Union by proposing additional tariffs on $4 billion of European imports in a dispute over subsidies to aircraft manufacturers.

Investors "may find this optimism cooling," Jingyi Pan of IG said in a report. "The sustainability of this upward movement remains in question with the uncertainty continuing for geopolitical tensions."

In early trading, London's FTSE 100 rose 0.2% to 7,514.62. Germany's DAX lost 0.1% to 12,506.06 and France's CAC 40 was off 3 points at 5,565.08.

On Wall Street, the future for the benchmark Standard & Poor's 500 index was down 0.1% and that for the Dow Jones Industrial Average was off 0.2%.

In Asia, Tokyo's Nikkei 225 gained 0.1% to 21,754.27. Hong Kong's Hang Seng added 1.2% to 28,875.56 after the latest bout of political protests was quelled with relatively little violence. Sydney's S&P-ASX 200 added 5 points to 6,653.20.

The Shanghai Composite Index was off 1 point at 3,043.94 and Seoul's Kospi shed 0.4% to 2,122.02.

India's Sensex was up 0.2% at 39,776.06. New Zealand and the Philippines advanced, while Taiwan and Singapore declined.

On Monday, the S&P 500 rose 0.8% after Trump's agreement to hold off imposing new tariffs on $300 billion of Chinese imports put investors in a buying mood.

Investors worry the fight over Beijing's technology ambitions will drag on global economic growth. Those concerns prompted the Federal Reserve last month to declare its willingness to cut interest rates if the dispute hurts the U.S. economy.

The S&P 500 rose to 2,964.33. The Dow gained 0.4% to 26,717.43. The Nasdaq composite rose 1.1% to 8,091.16.

The truce leaves 25% import taxes imposed by the U.S. on $250 billon of Chinese imports in place. And China maintains the tariffs it placed on $110 billion in American goods, primarily agricultural products.

Trump also said he would allow U.S. companies to sell some components to Chinese telecommunications giant Huawei, which last month was placed on an American blacklist as a national security threat.

Technology stocks and banks accounted for a large share of Monday's gains as traders turned their backs on more defensive holdings. Utilities and real estate stocks lagged the market in a sign of Wall Street's bigger appetite for risk.

Chipmakers rallied on plans by the U.S. to loosen some restrictions on sales to Huawei. Broadcom climbed 4.3% and Micron Technology gained 3.9%. Apple and Microsoft also rose.

AUSTRALIA RATE CUT: Australia's central bank cut its benchmark interest rate by a quarter of a%age point to a record low 1% in a bid to stimulate economic activity. It was the second cut in two months after the Reserve Bank of Australia had held steady for three years. The central bank governor, Philip Lowe, said the cut will "will support employment growth." Lowe said uncertainty generated by the trade and technology disputes was affecting investment.

ENERGY: Benchmark U.S. crude lost 1 cent to $59.08 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 62 cents on Monday to close at $59.09. Brent crude, used to price international oils, gained 5 cents to $65.10 per barrel in London. It gained 32 cents the previous session to $65.06.

CURRENCY: The dollar declined to 108.21 yen from Monday's 108.44 yen. The euro advanced to $1.1291 from $1.1285.

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