SEOUL, South Korea (AP) -- European stocks fell Monday after a weak manufacturing report sent Chinese markets lower. But Japan extended gains following its central bank's introduction of a negative interest rate policy to boost lending and spur growth.
KEEPING SCORE: Europe got off to a weak start with Britain's FTSE 100 down 0.4 percent to 6,061.56. France's CAC 40 lost 0.5 percent to 4,394.21 and Germany's DAX fell 0.4 percent to 9,761.33. Futures augured a lackluster start for Wall Street. Dow futures were down 0.3 percent and S&P 500 futures fell 0.4 percent.
CHINA MANUFACTURING: An index based on a survey of factory purchasing managers fell to 49.4 in January, its lowest in more than three years, in the latest sign of weakness for the world's No. 2 economy. January's reading was down from December's 49.7 on a 100-point scale on which numbers below 50 indicate contraction. Separately, the private Caixin/Markit purchasing managers' index showed improvement but was weak overall.
THE QUOTE: Investors will expect more stimulus from Beijing as the latest data showed that China's manufacturing is "in a state of further deterioration," said Mizuho Bank in a daily commentary. "Markets could be betting on more coordinated and forceful stimulus from Beijing too now that there is a certain policy stimulus momentum established."
ASIA'S DAY: Japan's Nikkei 225 rose 2 percent to 17,865.23 and South Korea's Kospi added 0.7 percent to 1,924.82. Hong Kong's Hang Seng fell 0.5 percent to 19,595.50 and the Shanghai Composite in mainland China lost 1.8 percent to 2,688.85. Australia's S&P/ASX 200 gained 0.8 percent to 5,043.60. Stocks in Singapore finished lower but Taiwan and Indonesia were higher.
CENTRAL BANKS: Analysts said after Japan's central bank introduced a negative interest rate policy on Friday, central banks in other countries may add to stimulus or be more cautious about tightening policy. "The Bank of Japan's move sets a more dovish tone for major central banks around the world," said Ric Spooner, chief analyst at CMC Markets in Sydney. "At the margin, it will increase the incentive for the ECB to add stimulus as it seeks to keep its currency relatively weak. Similarly the Fed and the Bank England will be a little more cautious about lifting rates."
ENERGY: Benchmark U.S. oil was down 40 cents to $33.21 a barrel in electronic trading on the New York Mercantile Exchange. It finished Friday at $33.62 a barrel, up 40 cents, or 1.2 percent. Brent crude, a benchmark for international oils, fell 37 cents to $35.62 a barrel in London.
CURRENCIES: The dollar rose to 121.18 yen from 121.12 yen on Friday. The euro strengthened to $1.0849 from $1.0831.