Bangkok, Jul 21 (AP) Shares are mostly higher in key markets in Europe and Asia after US stocks logged their third straight winning week.

Markets were closed for a holiday in Japan, where the ruling Liberal Democrats have lost their coalition majorities in both houses of parliament for the first time since 1955 following Sunday's upper house election and the loss of their lower house majority in October.

Germany's DAX edged less than 0.1% higher to 24,229.41, while the CAC 40 in Paris slipped 0.2% to 7,804.80. Britain's FTSE 100 inched up less than 0.1% to 8,999.29.

The futures for the S&P 500 and the Dow Jones Industrial Average were 0.3% higher.

In Japan, a grim Prime Minister Shigeru Ishiba has vowed to stay on after the drubbing by voters frustrated over rising prices and political instability. Analysts said they expect his weakened government to crank up spending, adding to Japan's huge debt burden.

Japan is also facing the imposition of 25% tariffs across the board on its exports to the US as talks with the Trump administration appear to have made little headway.

“We expect short-term political instability to intensify due to the difficulties of forming a majority coalition, a likely change in leadership, and a potential deadlock in trade negotiations,” Peter Hoflich of BMI, a part of the Fitch Group, said in a commentary.

“Without a structural reset through snap elections, Japan is likely to face prolonged policy drift throughout 2026,” he said.

Chinese shares advanced after the central bank kept its key 1-year and 5-year loan prime interest rates unchanged. Hong Kong's Hang Seng rose 0.7% to 24,994.14, while the Shanghai Composite index gained 0.7% to 3,559.79.

Recent improved economic data have eased pressure on the Chinese leadership to soften credit. Meanwhile, President Donald Trump's administration has softened its criticism of Beijing, raising hopes that the two sides can work out a trade deal and avert the imposition of sharply higher tariffs on imports from China.

South Korea's Kospi picked up 0.7% to 3,210.81 after the government reported a slight improvement in exports in June.

In Australia, the S&P/ASX 200 shed 1% to 8,668.20, while Taiwan's Taiex dropped 0.2%. In India, the Sensex rose 0.3%. Bangkok's SET gained 0.2%.

This week will bring updates on US home sales, jobless claims and manufacturing. Several Big Tech companies including Alphabet and Tesla are due to provide earnings reports.

On Friday, the S&P 500 handed back less than 1 point after setting an all-time high the day before. The Dow Jones Industrial Average fell 0.3% and the Nasdaq composite edged up by less than 0.1% to add its own record.

The heaviest weight on the market was Netflix, which fell 5.1% despite reporting a stronger-than-expected profit.

Exxon Mobil sank 3.5% and also tugged on the market. It had been challenging Chevron's $53 billion deal to buy Hess, but an arbitration ruling in Paris about Hess assets off Guyana's coast allowed the buyout to go through. Chevron fell 0.9% after losing an early gain.

Treasury yields eased after a report suggested U.S. consumers may be feeling less fearful about coming inflation. They're bracing for inflation of 4.4% in the year ahead, down from last month's projection of 5%, according to preliminary results from a University of Michigan survey.

Prices may already be starting to feel the upward effects of President Donald Trump' s higher tariffs, according to data released last week.

The Trump administration is preparing to impose steeper import duties on many countries as of Aug 1, although some have worked out deals to mitigate some of the damage.

In other trading early Monday, US benchmark crude oil reversed gains, shedding 32 cents to $65.73 per barrel. Brent crude, the international standard, lost 37 cents to $68.91 per barrel.

The US dollar fell to 147.88 Japanese yen from 147.98 yen. The euro climbed to $1.1645 from $1.1629. (AP) NSA NSA

Trade tariffs threaten export access while arbitration outcomes reshape cross-border M&A and regulatory risk for global firms. Prospective higher import duties and ongoing trade negotiations pose immediate regulatory and compliance risks for exporters, with announced plans to raise tariffs on multiple trading partners and potential bilateral mitigations. An international arbitration ruling resolving a dispute over offshore assets materially affected a cross-border acquisition, demonstrating arbitration's practical impact on M&A timing and asset control. Political instability and unchanged central bank lending rates further compound sovereign and regulatory uncertainty, amplifying legal and market risk for cross-border commerce and contractual counterparties.