Shares mostly higher after U.S.-Canada set new trade deal

Yuri Kageyama, The Associated Press</span>
Published Monday, October 1, 2018 12:25AM EDT
Last Updated Monday, October 1, 2018 6:20AM EDT

TOKYO -- World shares were mostly higher Monday after the U.S. and Canada said they had agreed to a revised trade pact.

KEEPING SCORE: Germany's DAX rose 0.7 per cent to 12,327.01 and the CAC 40 in France advanced 0.3 per cent to 5,507.74. Britain's FTSE 100 gained 0.1 per cent to 7,518.97. The future contract for the S&P 500 jumped 0.6 per cent to 2,937.20 and the contract for the Dow picked up 0.8 per cent to 26,678.00.

THE DAY IN ASIA: Japan's benchmark Nikkei 225 gained 0.5 per cent to 24,245.76. Australia's S&P/ASX 200 lost 0.6 per cent to 6,172.30. South Korea's Kospi gave up 0.2 per cent to 2,338.88, while India's Sensex surged 0.8 per cent to 36,526.14. Shares were mixed in Southeast Asia. Markets in Hong Kong and the Chinese mainland were closed for National Day holidays.

NAFTA REVISED: Canada agreed to a revamped free trade deal with the United States and Mexico late Sunday after weeks of bitter, high-pressure negotiations. The deal reached just before a U.S.-imposed midnight deadline will be called the United States-Mexico-Canada Agreement, or USMCA. It replaces the 24-year-old North American Free Trade Agreement. The agreement gives U.S. farmers greater access to the Canadian dairy market, but keeps a NAFTA dispute-resolution process the U.S. opposed. It also offers Canada protection if Trump imposes tariffs on cars, trucks and auto parts imported into the United States.

JAPAN TANKAN: A key quarterly economic survey by the Bank of Japan showed that sentiment among large manufacturers dipped two points to 19, as worries grow about global trade tensions. The "tankan" survey, released Monday, marked the third straight quarter of decline.

CHINA DATA: Recent data from China show its exports shrank in September as a tariff battle with Washington over technology escalated, adding to downward pressure on the world's No. 2 economy. Signs are emerging that Chinese trade, which had held up despite U.S. President Donald Trump's tariff hikes, might be weakening.

ENERGY: Benchmark U.S. crude picked up 25 cents to $73.50. It rose 1.6 per cent to $73.25 per barrel in New York on Friday. Brent crude, used to price international oils, added 51 cents to $83.24 per barrel in London.

CURRENCIES: The dollar rose to 114.01 yen from 113.69 yen on Friday. The euro strengthened to $1.1617 from $1.1605.

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