US and European stocks rise as tech leads the gains
US and European stocks rise as tech leads the gains

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U.S. and European stocks tracked higher in Asia on Monday, as traders assessed stimulus from Beijing and looked ahead to jobs data from the world’s largest economy.

After midday in New York, Wall Street’s S&P 500 rose 0.3%, while the tech-heavy Nasdaq Composite rose 0.4%.

U.S.-listed Chinese tech companies contributed to modest gains, with JD.com and Baidu up more than 2 percent and 3 percent, respectively.

The moves come after Beijing cut taxes on stock transactions for the first time since the 2008 financial crisis. China’s finance ministry on Sunday rolled out more measures to support China’s struggling markets, saying it would halve stamp duty on stock transactions to boost investor confidence.

The announcement is the latest in a series of attempts by top Chinese officials to stimulate the world’s second-largest economy, which has struggled to regain growth momentum after three years of severe virus restrictions.

3M was another gainer on Wall Street, with shares rising nearly 5% after a report that the company was close to reaching a $6 billion settlement over legal claims that earbuds supplied to U.S. military personnel failed to prevent hearing loss.

In Europe, the regional Stoxx 600 closed 0.9% higher after two days of losses. Technology stocks led the gains, with the Stoxx 600 technology index up 1.7 percent. UK markets were closed for a public holiday.

European luxury stocks, which are closely tied to expectations for Chinese consumer spending, also rose, with heavyweights Hermès and LVMH up 1.8 percent and 1.7 percent, respectively.

China’s CSI 300 index closed up 1.2%, after rising as much as 5.5% earlier in the session. Hong Kong’s Hang Seng ended 1% higher.

Traders on Monday also looked ahead to U.S. labor market data due this weekend, which will be closely watched for clues on the path of future rate hikes.

Economists polled by Reuters had forecast nonfarm payrolls rising by 170,000 in August, compared with 187,000 in July.

Federal Reserve Chairman Jay Powell told the Jackson Hole economic conference on Friday that inflation “remains too high” and the central bank could raise interest rates further if price pressures persist.

The Fed last raised its benchmark federal funds rate to a 22-year high in July and could tighten monetary policy further if rate-setters deem it necessary.

The dollar fell 0.1% against a basket of six other currencies.

The benchmark 10-year yield fell 0.03 percentage point to 4.2% on Monday, while the policy-sensitive two-year yield rose 0.01 percentage point to 5.07%. Bond yields rise as prices fall.

Trading volumes are usually light in late August, which was made even worse by the UK holiday on Monday.

Elsewhere in Asia, Japan’s Topix rose 1.5 percent and Australia’s S&P/ASX 200 gained 0.6 percent.

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