World shares and US futures advance after trade pact

As trade envoys from the world’s two biggest economies blinked yesterday, finding ways to pull back from potentially massive disruptions to world trade and their own markets, investors rejoiced.

The future for the S&P 500 jumped 2.6% and that for the Dow Jones Industrial Average was up 2%.

Oil prices rallied, with U.S. benchmark crude oil gaining $1.66 to $62.68 per barrel. Brent crude, the international standard, added $1.63 to $65.55 per barrel.

The U.S. dollar surged against the Japanese yen, trading at 148.18 Japanese yen, up from 146.17 yen. The euro fell to $1.1107 from $1.1209.

In other stock trading, Tokyo’s market closed before the joint statement was issued, gaining less than 0.1% to 37,644.26. But Hong Kong’s, which closes later, jumped 3% to 23,558.11.

Germany’s DAX gained 1% to 23,723.55 and the CAC 40 in Paris added 0.8% to 7,805.62. Britain’s FTSE 100 edged 0.1% higher, to 8,560.42.

Investors were also watching for developments in other flashpoints including clashes between India and Pakistan, the war in Ukraine and conflict in the Middle East.

The Sensex in Mumbai shot up 3.2% after India and Pakistan agreed to a truce after talks to defuse their most serious military confrontation in decades. The two armies have exchanged gunfire, artillery strikes, missiles and drones that killed dozens of people.

Pakistan’s KSE 100 surged more than 9% and trading was halted for one hour following a spike driven by the ceasefire and an International Monetary Fund decision Friday to disburse about $1 billion of a bailout package for its battered economy.

The Shanghai Composite Index picked up 0.8% to 3,369.24.

Chinese EV battery maker CATL, or Contemporary Amperex Technology Cso., Ltd., said in a prospectus filed with the Hong Kong Stock Exchange that it plans to raise nearly $4 billion in a share listing.

Elsewhere in Asia, the Kospi in Seoul gained 1.2% to 2,607.33.

Australia’s S&P/ASX 200 climbed less than 0.1% to 8,233.50.

Taiwan’s Taiex gained 1%. MDT/AP