Asian stocks were mixed on Tuesday after reports showed a slowdown in production in China is declining as anti-virus restrictions for businesses in Shanghai and Beijing are eased.
U.S. futures rose after markets closed in New York on Monday on Remembrance Day. European stocks rose on Monday.
Oil prices traded above $ 115 a barrel following an agreement by European Union leaders on an embargo on most Russian oil imports to the bloc by the end of the year.
The pact, which is part of new sanctions against Moscow, was drafted at a summit to help Ukraine through a long-delayed package of new financial support. The embargo applies to Russian oil imported by sea, which temporarily eliminates imports supplied through the pipeline. This was very important for a decision that required consensus, a landlocked Hungary.
In electronic trading on the New York Mercantile Exchange, US benchmark oil rose $ 2.77 to $ 117.84 a barrel. On Monday, it added 98 cents to $ 115.07 a barrel.
Brent crude oil, used as a basis for pricing in international trade, rose 76 cents to $ 118.38 a barrel.
China’s easing of anti-virus restrictions for businesses in Shanghai and Beijing has raised hopes for stronger growth in the world’s second-largest economy.
An official poll found that factory activity increased in May, albeit still below 50, indicating an expansion to 100. The core index of manufacturing purchasing managers, or PMI, rose to 49.6 from 47.4 in April.
“PMI indices are likely to underestimate the scale of this month’s recovery, given that polls were largely conducted before most restrictions in Shanghai were eased,” said Sheana Yue of Capital Economics. “We suspect that the tough data to be presented in the coming weeks will show a stronger recovery.”
More factories, shops and other businesses were allowed to reopen this week in Shanghai and the Chinese capital Beijing after authorities announced outbreaks of the disease under control. The Shanghai city government has promised lower rents and taxes, faster approval of construction projects and more subsidies for the purchase of electric vehicles.
The Shanghai Composite Index rose 0.2% to 3,154.44, while Hong Kong’s Hang Seng rose 0.1% to 21,144.72.
The Tokyo Nikkei 225 rose 0.1% to 27,404.14, while Kospi in Seoul rose 0.1% to 2,672.33.
The Australian S&P / ASX 200 lost 0.2% to 7,268.80. Shares in Taiwan also fell in price.
The future for the Wall Street S&P 500 was 0.3% higher after the benchmark ended 6.6% on Friday the week after inflation fell sharply.
The future for Dow Jones Industrial Average futures is up 0.1%.
Investors were relieved after data from the Department of Commerce showed that U.S. inflation, which forced the Federal Reserve to raise interest rates, slowed to 6.3% from a year earlier in April, the first decline in 17 months.
But concerns remain about whether the Fed can control inflation, which is at its highest level in four decades, without throwing the world’s largest economy into recession.
Oil prices have risen 60% this year due to fears of supply disruptions from Russia, the world’s second-largest exporter. Prices for wheat rose by about 50% and for corn – by 30%.
The dollar rose to 128.09 Japanese yen from 127.55 yen on Monday late Monday. The euro fell to $ 1.0747 from $ 1.0778.