Stocks shrug off U.S. unrest to test 3-month highs

Stocks shrug off U.S. unrest to test 3-month highs

Stocks in Asia and Europe rose Monday, shrugging off worries of the U.S. unrest and mounting tensions between Washington and Beijing.

Julian Satterthwaite reports.

A weekend of mounting unrest in U.S. cities… And brewing U.S.-China tensions over Hong Kong… But none of it was enough to worry markets much on Monday (June 1).

Stocks in Asia hit three-month highs, partly on relief that Washington’s latest moves were less sharp than expected.

Donald Trump has begun the process of ending special treatment for Hong Kong to punish China.

But traders note he said nothing that could undermine the first phase U.S. trade deal with Beijing.

That helped stocks in Hong Kong jump 3.6%, while Chinese blue chips closed 2.4% higher.

The mood there was helped by data that showed momentum gaining in the services and construction sectors.

That positivity carried over into Europe, where the regional Stoxx 600 gained close to 1% in early trade before easing back.

It too is closing in on three-month highs.

Travel-related stocks among the gainers on as restrictions on movement ease.

British Airways-owner IAG rose over five percent.

But the unrest in the U.S. did show up on market radar.

The U.S. dollar sank to 11-week lows against a basket of currencies, with traders citing the riots as one factor fuelling uncertainty.