TOKYO (AP) — Global shares were trading higher Monday amid optimism over the rally that ended the week on Wall Street, although eyes were on the Federal Reserve policy meeting set for later this week.
France's CAC 40 added 0.3% in early trading to 8,109.22, while Germany's DAX edged up 0.2% to 18,198.89. Britain's FTSE 100 gained 0.5% to 8,176.36. U.S. shares were set to drift higher with S&P 500 futures up 0.2% at 5,144.00. Dow futures rose 0.2% to 38,509.00.
Sydney's S&P/ASX 200 added 0.8% to 7,637.40. South Korea's Kospi surged 1.2% to 2,687.44. Hong Kong's Hang Seng edged up 0.5% to 17,746.91, while the Shanghai Composite rose 0.8% to 3,113.04.
Trading was closed in Tokyo for a holiday, Showa Day. Japan has a series of holidays coming up known as the Golden Week, through Monday.
Stephen Innes, managing partner at SPI Asset Management, said the market mood was positive after last week's Wall Street tech-driven rally.
The recent string of strong earnings have boosted market sentiments, but what could be a risk factor is the declining Japanese yen, he added.
“Investors will be closely monitoring the latest developments in the remarkable and volatile decline of the Japanese yen against the U.S. dollar and other major currencies,” Innes said.
The yen reached a new 34-year low after the Bank of Japan’s decision to keep interest rates unchanged Friday. That was in line with expectations, but what was unexpected was the central bank’s apparent lack of significant concern about the exchange rate, Innes added.
In currency trading Monday, the U.S. dollar edged up at one point to 160 Japanese yen levels, before cascading downward, to as low as 155 yen, raising speculation of market intervention by the Bank of Japan. The central bank does not comment on such moves. The finance minister, when questioned by Japanese reporters, declined to comment.
“The medium-term impact of a currency intervention is not a given if the intervention is not backed by a more hawkish policy stance,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
The dollar cost 155.89 yen in afternoon trading. The euro cost $1.0724, up from $1.0699.
A weak yen can be a boon for Japan's giant exporters like Toyota Motor Corp. by boosting the value of their overseas earnings when converted into yen.
But a weak currency can hurt the economy in the long run because it reduces purchasing power and possible wage growth. Japan imports almost all its energy.
Recent data on U.S. inflation have analysts expecting the Federal Reserve to keep rates on hold. Its main interest rate has been sitting at the highest level since 2001. A report released Friday showed inflation remaining high.
After earlier indicating that three cuts to interest rates could happen this year, top Fed officials have since said they could hold its main interest rate high for a while to ensure inflation heads down toward the 2% target.
In energy trading, benchmark U.S. crude fell 51 cents to $83.34 a barrel. Brent crude, the international standard, lost 73 cents to $88.77 a barrel.
A currency trader passes by the screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 29, 2024. (AP Photo/Ahn Young-joon)
A currency trader passes by the screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 29, 2024. (AP Photo/Ahn Young-joon)
EDMONTON, Alberta (AP) — Favorable winds are expected to push an “out of control” wildfire away from Canada’s oil sands hub of Fort McMurray, Alberta, officials said Wednesday, a day after thousands were evacuated.
Wildfire season has started early in Canada this year with several fires burning across the country's west, forcing residents out of their homes.
The fire, which started last week, caused about 6,600 residents to flee parts of the southern end of Fort McMurray. The rest of the city remains on evacuation alert.
Earlier Wednesday, Regional Fire Chief Jody Butz told reports in Fort McMurray that “a large number of residents” also self-evacuated, adding that they could return home “if they live in those areas that are not under an (evacuation) order.”
Butz also said; “The fire is still out of control and in the next few days with the graces of some good weather that could change,” and that evacuation orders were likely to remain in place until at least May 21 and residents should plan accordingly.
Now, shifting winds are giving locals hope their city may be spared.
Christine Tucker, Alberta’s Wildfire Information Unit Manager, said — during a press conference in the city of Edmonton together with the province’s premier, Danielle Smith — that winds from the northwest at 10 kilometers (6 miles) an hour are expected to push the fire away “from the community and away from the highway.”
She added “lower winds” have been recorded, adding they are “really favorable ... for us.”
Tucker also described the wildfire, which has so far grown to cover about 21,000 hectares (2.4 acres), as "out of control," but said cooler temperatures will also mean slightly less wildfire activity.
Fort McMurray, which has a population of about 68,000, suffered a devastating blaze in 2016 that destroyed 2,400 homes and forced more than 80,000 people to flee.
“I’m sure these memories will create fear and uncertainty for many in Fort McMurray. My sympathy is with everyone facing this situation, but safety must remain our top priority,” said Smith.
Butz, the fire chief, assured that the current wildfire was much different and that they were “way better positioned now." He said it was burning along the surface of the ground through the aftermath of the former blaze and had much less fuel, and that muskeg was generating the smoke noticed by locals.
Smith’s government announced that those displaced by fire evacuations would be eligible to receive $1,250 Canadian (US$919) per adult and $600 Canadian (US$441) per child forced out of their homes.
In the neighboring province of British Columbia, a widening area around the northeastern community of Fort Nelson is under evacuation, with the Parker Lake wildfire burning close by and the larger Patry Creek wildfire raging to the northwest. About 4,700 people had to leave their homes.
In Manitoba, about 500 people have been forced out of their homes in the remote northwestern community of Cranberry Portage ahead of a fire measuring more than 300 square kilometers.
In 2023, Canada experienced a record number of wildfires that caused choking smoke in parts of the U.S. and forced more than 235,000 Canadians to evacuate their communities. No civilians died, but at least four firefighters died.
Associated Press writer Rob Gillies in Toronto contributed this report.
A wildfire burns in northern Manitoba near Flin Flon, as seen from a helicopter surveying the situation, Tuesday, May 14, 2024. (David Lipnowski/The Canadian Press via AP)
A wildfire burns in northern Manitoba near Flin Flon, as seen from a helicopter surveying the situation, Tuesday, May 14, 2024. (David Lipnowski/The Canadian Press via AP)
Manitoba Premier Wab Kinew speaks with evacuees from the Cranberry Portage area at the reception centre at the Wescana Inn in The Pas, Man., as wildfires burn in northern Manitoba, Tuesday, May 14, 2024. (David Lipnowski/The Canadian Press via AP)
Manitoba Premier Wab Kinew surveys wildfires burning in northern Manitoba from a helicopter on Tuesday, May 14, 2024. (David Lipnowski/The Canadian Press via AP)
Burned trees from the 2016 wildfire stand sentinel over a neighbourhood in Fort McMurray, Alberta, on Wednesday, May 15, 2024. (Jeff McIntosh /The Canadian Press via AP)
Burned trees from the 2016 wildfire stand sentinel over a neighborhood in Fort McMurray, Alberta, on Wednesday, May 15, 2024. (Jeff McIntosh /The Canadian Press via AP)
Traffic moves along Alberta Highway 63 as wildfire smoke hangs in air in Fort McMurray, Alta., on Wednesday, May 15, 2024. (Jeff McIntosh /The Canadian Press via AP)
David Warwick, an evacuated resident of the Beacon Hill neighbourhood, pauses to be interviewed before retrieving some belongings from his home in Fort McMurray, Alta., on Wednesday, May 15, 2024. (Jeff McIntosh /The Canadian Press via AP)
Burned trees from the 2016 wildfire stand sentinel over a neighbourhood in Fort McMurray, Alta., on Wednesday, May 15, 2024. (Jeff McIntosh /The Canadian Press via AP)
Police vehicles control access to the evacuated neighbourhood of Beacon Hill in Fort McMurray, Alta., on Wednesday, May 15, 2024. (Jeff McIntosh /The Canadian Press via AP)
Traffic moves along Alberta Highway 63 as wildfire smoke hangs in air in Fort McMurray, Alta., on Wednesday, May 15, 2024. (Jeff McIntosh /The Canadian Press via AP)
Burned trees from the 2016 wildfire stand sentinel over a neighbourhood in Fort McMurray, Alta., on Wednesday, May 15, 2024. (Jeff McIntosh /The Canadian Press via AP)
Fire fighting personnel arrive in the evacuated neighborhood of Beacon Hill in Fort McMurray, Alberta, Canada on Wednesday, May 15, 2024. (Jeff McIntosh/The Canadian Press via AP)
Fire get into their truck in the evacuated neighborhood of Beacon Hill in Fort McMurray, Albeta, Canada on Wednesday, May 15, 2024. (Jeff McIntosh/The Canadian Press via AP)
A pumper truck sprays fire retardant on trees around the evacuated neighborhood of Beacon Hill in Fort McMurray, Alberta, Canada, on Wednesday, May 15, 2024. (Jeff McIntosh/The Canadian Press via AP)
A resident gets back into his vehicle after speaking with police officers blocking the entrance to the evacuated neighborhood of Prairie Creek in Fort McMurray, Alberta, on Wednesday, May 15, 2024. (Jeff McIntosh/The Canadian Press via AP)
Police vehicles block the entrance to the evacuated neighborhood of Beacon Hill in Fort McMurray, Alberta, on Wednesday, May 15, 2024. (Jeff McIntosh/The Canadian Press via AP)
Police vehicles block the entrance to the evacuated neighborhood of Beacon Hill in Fort McMurray, Alberta, on Wednesday, May 15, 2024. (Jeff McIntosh/The Canadian Press via AP)
A fire department vehicle enters the evacuated neighborhood of Beacon Hill in Fort McMurray, Alberta, on Wednesday, May 15, 2024. (Jeff McIntosh/The Canadian Press via AP)
A pumper truck sprays fire retardant on trees around the evacuated neighborhood of Beacon Hill in Fort McMurray, Alberta, Canada on Wednesday, May 15, 2024. (Jeff McIntosh/The Canadian Press via AP)
