Stock markets pick up after Asia drops over Trump tariffs

SINGAPORE — European stock markets rose and Wall Street was expected to open higher on Monday, despite a drop in Asia, where investors fretted over the possibility of new and bigger U.S. tariffs on Chinese goods.

KEEPING SCORE: In Europe, France's CAC 40 was up 0.5 percent at 5,277, while Britain's FTSE 100 gained 0.3 percent to 7,301. Germany's DAX gained 0.4 percent to 12,010. On Wall Street, Dow and S&P 500 futures both added 0.4 percent.

ASIA'S DAY: Hong Kong's Hang Seng index tumbled 1.3 percent to 26,613.42 and the Shanghai Composite index gave up 1.2 percent to 2,669.48. Japan's benchmark Nikkei 225, however, climbed 0.3 percent to 22,373.09 after the country's gross domestic product surpassed expectations by growing at a 3 percent annual rate in the April-June quarter. Australia's S&P/ASX 200 was less than 0.1 percent lower at 6,141.70 and the Kospi in South Korea gained 0.3 percent to 2,288.66.

U.S.-CHINA TRADE: On Friday, U.S. President Donald Trump told reporters that $267 billion in potential new tariffs, which would essentially hit every product imported from China, were "ready to go on short notice if I want." Such a step would significantly escalate his trade war with Beijing and would likely increase costs for a broad range of U.S. businesses and consumers. The Trump administration is already poised to slap tariffs on $200 billion worth of goods from China, such as handbags and bicycle tires. The U.S. has already imposed tariffs on $50 billion in Chinese products, for which Beijing has retaliated with an equal amount of import taxes on U.S. goods.

STRONG JOBS REPORT: Investor sentiment was supported by upbeat economic data out of the U.S. on Friday that showed the pace of hiring quickened in August and wages growing at their fastest pace in nine years. The economy added a strong 201,000 jobs and the unemployment rate stayed at 3.9 percent, near an 18-year low. The data point to a job market that remains resilient after nearly a decade of economic growth, and even with tariffs and counter-tariffs on imports and exports looming over U.S. employers that rely on global trade.

ENERGY: Benchmark U.S. crude added 50 cents to $68.25 a barrel. Brent crude, used to price international oils, gained 65 cents to $77.48 a barrel.

CURRENCIES: The dollar was flat at 111.09 yen. The euro rose to $1.1574 from $1.1566. The Indian rupee fell to a fresh low of 72.67 to the dollar on Monday afternoon before recovering slightly to 72.46, battered by rising crude oil prices, a widening current account deficit and the strengthening dollar.

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