US economy growth rate could lift JSE

The JSE, which edged lower last week, could open slightly higher on Monday after data showed that the US economy grew faster than expected in the first quarter.

On Friday, a data release showed that the US economy grew 3.2% in the three-month period, well ahead of expectations of 2.3%.

The S&P 500 gained 0.5% on the day to reach a record high, even though investors held concerns that consumer spending in the world’s biggest economy had slowed for a third consecutive quarter, suggesting that growth momentum could ease up.

While the Shanghai Composite was flat on Monday, Hong Kong’s Hang Seng index was 0.8% higher and Singapore’s STI index was 0.9% up.

Korea’s Kospi index rose 1.2%, while Japanese markets are closed for 10 days.

Naspers-associate Tencent was 1.5% up in Hong Kong, suggesting a stronger opening for Africa’s largest public company, while JSE heavyweight BHP Group rose 0.6% in Australia.