Global Shares Rise on Last Week's Rally04/29 04:52

   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.

   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.