Global stocks close mixed after tariff hikes Markets closed

European stock markets drifted higher Monday while Asia was mixed after the U.S. and China escalated their war over trade and technology with new tariff increases.

U.S. markets were closed for the Labor Day holiday, draining some of the energy from global trading. Benchmarks in London, Paris and Shanghai advanced. Tokyo and Hong Kong declined.

Markets reacted less strongly to the weekend tariff hikes on billions of dollars of goods than to previous increases. Investors are hoping for progress in talks this month, but analysts warn the fight over trade and technology is unlikely to be quickly resolved.

“The short-lived truce will probably provide limited relief,” said Zhu Huani of Mizuho Bank in a report. “Businesses have become increasingly uncertain about future prospects, evidenced by the pullback in business investment amidst growing concerns on growth.”

The broad Europe STOXX 600 rose 0.3 percent to 380.55, London’s FTSE 100 rose 1.11 percent to 7,286.86 and France’s CAC 40 added 0.2 percent to 5,487.66. Germany’s DAX was 0.1 percent higher at 11,949.22.

In Asia, the Shanghai Composite Index gained 1.3 percent to 2,924.11 while Tokyo’s Nikkei 225 shed 0.4 percent to 20,620.19. Hong Kong’s Hang Seng lost 0.4 percent to 25,626.55. Seoul’s Kospi ended 1 point higher at 1,969.19 and Sydney’s S&P-ASX 200 retreated 0.4 percent to 6,579.40. U.S. stock markets were closed Monday in observance of the Labor Day holiday.

On Sunday, the United States started charging 15 percent tax on about $112 billion of Chinese imports. China responded by charging taxes of 10 percent and 5 percent on a list of American goods. Negotiators are due to meet this month in Washington but neither side has given any sign it might offer concessions.

The U.S. is pressing China to narrow its trade surplus and roll back plans for government-led creation of companies that can compete globally in robotics and other industries. China’s trading partners say those violate its freetrade obligations and are based on stealing or pressuring companies to hand over technology.

On Wall Street, stocks ended little changed Friday after a listless day of trading ahead of a holiday weekend. The market closed out August with its second monthly decline this year, after May.