Malaysian and Pakistani prime ministers agree to boost trade and economic ties

ISLAMABAD (AP) — The prime ministers of Malaysia and Pakistan agreed in talks Thursday to increase bilateral trade and boost economic ties between their nations.

The announcement by Anwar Ibrahim and his Pakistani counterpart, Shehbaz Sharif, followed talks in Islamabad on how to further strengthen the two nations’ cooperation in diverse fields, including energy, agriculture, connectivity and tourism.

Ibrahim arrived Wednesday for a three-day visit to Pakistan. Bilateral trade between the two sides in the fiscal 2023-2024 year was at $1.5 billion.

According to a government statement on Thursday, “the two sides agreed to strengthen bilateral economic cooperation, enhance trade, remove barriers in key sectors, provide a level playing field, and address the trade imbalance”.

Cash-strapped Pakistan, which recently got a $7 billion new loan from the International Monetary Fund, has also been trying to increase trade with Middle Eastern and Western nations.

However, the predominantly Muslim nation of 240 million people is also facing deepening political turmoil as supporters of imprisoned former Prime Minister Imran Khan have been rallying for his release. Another demonstration by Khan’s supporters is planned for Friday in thee Pakistani capital.

Khan has been held in prison since last year and he has been embroiled in more than 150 cases since his ouster in a no-confidence vote in the parliament in 2022.

In this photo released by Pakistan's Prime Minister Office, Pakistan's Prime Minister Shehbaz Sharif, right, meets with Malaysian Prime Minister Anwar Ibrahim, in Islamabad, Pakistan, Thursday, Oct. 3, 2024. (Prime Minister Office via AP)

In this photo released by Pakistan's Prime Minister Office, Pakistan's Prime Minister Shehbaz Sharif, right, and Malaysian Prime Minister Anwar Ibrahim, shake hands as they pose for photos during their meeting in Islamabad, Pakistan, Thursday, Oct. 3, 2024. (Prime Minister Office via AP)

In this photo released by Pakistan's Prime Minister Office, Malaysian Prime Minister Anwar Ibrahim, center, reviews guard of honor at the Prime Minister House in Islamabad, Pakistan, Thursday, Oct. 3, 2024. (Prime Minister Office via AP)

In this photo released by Pakistan's Prime Minister Office, Pakistan's Prime Minister Shehbaz Sharif, right, walks with Malaysian Prime Minister Anwar Ibrahim, at the Prime Minister's House, in Islamabad, Pakistan, Thursday, Oct. 3, 2024. (Prime Minister Office via AP)

In this photo released by Pakistan's Prime Minister Office, Pakistan's Prime Minister Shehbaz Sharif, right, reviews guard of honor with Malaysian Prime Minister Anwar Ibrahim, at the Prime Minister's House, in Islamabad, Pakistan, Thursday, Oct. 3, 2024. (Prime Minister Office via AP)

NEW YORK (AP) — Wall Street is drifting through a mixed Thursday of trading following the latest data showing a solid U.S. economy, while crude oil prices continue to climb.

The S&P 500 was 0.1% lower in morning trading, following a shaky run where worries about worsening tensions in the Middle East knocked the index off its record. The Dow Jones Industrial Average was down 139 points, or 0.3%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was 0.1% higher.

Oil prices rose again as the world continues to wait to see how Israel will respond to Iran’s missile attack from Tuesday. A barrel of Brent crude, the international standard, climbed 2.7% to top $75 after starting the week below $72.

Iran is a major producer of oil, and a worry is that a broadening war could affect neighboring countries that are also integral to the flow of crude. Helping to keep oil prices in check, though, are signals that supplies remain ample at the moment.

In the bond market, Treasury yields rose following a pair of reports on the U.S. economy. One showed growth for real estate, health care and other U.S. services businesses accelerated to its strongest level since February 2023 and topped economists' expectations, though employment trends may be slowing.

A separate report, meanwhile, suggested the number of layoffs across the United States remains relatively low. Slightly more workers filed for unemployment benefits last week, but the number remains low compared with history.

The dominant question hanging over Wall Street has been whether the job market will continue to hold up after the Federal Reserve earlier kept interest rates at a two-decade high. The Fed wanted to press the brake hard enough on the economy to stamp out high inflation.

Stocks are near their records because of hopes the U.S. economy will indeed continue to grow, now that the Federal Reserve is cutting interest rates to give it more juice. The Fed last month lowered its main interest rate for the first time in more than four years and indicated more cuts will arrive through next year.

The job market could use help, as U.S. hiring has been slowing. The U.S. government will release the latest monthly update on the jobs market on Friday, and economists expect it to show hiring slowed slightly from August's pace.

On Wall Street, Levi Strauss dropped 7.2% despite reporting better profit for the latest quarter than analysts expected. The denim company’s revenue fell short of forecasts, and it said it’s considering what to do with its Dockers brand, whose revenue fell 7% last quarter.

Helping to offset it were gains for Nvidia and other stocks that have been caught up in Wall Street's frenzy around artificial-intelligence technology. Nvidia rose 3.4% and was the strongest force pushing upward on the S&P 500, while Super Micro Computer climbed 3% for another one of the biggest gains in the index.

The yield on the 10-year Treasury rose to 3.81% from 3.78% late Wednesday. The two-year yield, which moves more closely with expectations for what the Fed will do with overnight rates, rose to 3.67% from 3.64%.

In stock markets abroad, Japan’s Nikkei 225 jumped 2% as its sharp swings continue amid speculation about when the country’s central bank may hike interest rates next.

Hong Kong’s Hang Seng has also been swerving, and it gave back 1.5%. Stocks in China have been largely surging on hopes for a flurry of recent announcements from Beijing to prop up the world’s second-largest economy. With Shanghai and other markets in China closed for a weeklong holiday, trading has crowded into Hong Kong.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

FILE - People pass the New York Stock Exchange on Oct. 1, 2024, in New York. (AP Photo/Peter Morgan, File)

A person walks in front of the Tokyo Stock Exchange building Wednesday, Oct. 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

FILE - Signs marking the intersection of Broad and Walls Streets appear near the New York Stock Exchange on Oct. 1, 2024, in New York. (AP Photo/Peter Morgan, File)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 3, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person rides a bicycle in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 3, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 3, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person stands in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 3, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 3, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)