International shares rose, tracking gains in U.S. stock markets, as China indicated its phase-one trade deal with America remained on track.
Futures tied to the S&P 500 index rose 1%, suggesting the blue-chip index will extend its rally when trading begins in New York. The Stoxx Europe 600 rose 0.7%, led by shares in manufacturers of cars and auto parts.
In Asia, the Shanghai Composite rose 0.8% and Hong Kong’s Hang Seng Index 0.9%. Japan’s Nikkei 225 advanced 2.6%.
The top trade negotiators for the U.S. and China talked on the phone Friday, pledging to create favorable conditions for the two countries’ phase-one trade deal, China’s state-run Xinhua News Agency reported. The call came after President Trump threatened to “terminate” the trade deal if China failed to buy promised goods and services from the U.S.
U.S. stocks broadly rose Thursday, boosted in part by a continued decline in the number of workers filing unemployment claims. The tech-heavy Nasdaq Composite added 1.4%, re-entering positive territory for the year, with PayPal Holdings jumping 14% after the digital payments company reported a sharp increase in new active accounts.
Khiem Do, head of Greater China Investments at Barings, said a gulf had opened up between digital-economy companies specializing in areas such as online games, shopping or entertainment, which were doing extremely well, and the old economy, which was hard hit by the pandemic.
“There are two worlds operating simultaneously,” he said.
In Asia, Chinese game and social-media giant Tencent Holdings Ltd. is up about 11% this year, according to FactSet, outperforming Hong Kong’s Hang Seng Index.
However, Mr. Do said traditional economic activity was likely to start recovering in the second half of the year, pointing to resumption of business activity in countries such as China and South Korea.
Mr. Do said the recent recovery in stocks had divided investor opinion, with many investors holding cash to guard against any future market corrections, while others have jumped back into a rising market.
His asset-management firm predicts earnings per share in Asia will drop about 20% in 2020, in line with the rest of the world, but he said this had already been priced in.
In bond markets, the yield on the 10-year U.S. Treasury note rose to 0.635% from 0.630%. Yields move inversely to bond prices. The yield on the two-year equivalent rose slightly to 0.133%, according to Tradeweb, after settling at a record low on Thursday.
Brent crude, the global oil benchmark, rose 2.7% to $30.26 a barrel.
Japan’s Nikkei 225 closed 2.6% higher Friday.
Photo: Eugene Hoshiko/Associated PressWrite to Xie Yu at Yu.Xie@wsj.com and Joe Wallace at Joe.Wallace@wsj.com
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