World Stocks Up on China Stimulus Hopes
TOKYO (AP) -- Global shares rose Tuesday after a fresh promise of stimulus from Beijing helped to counter pessimism over recent weak trade data from China, and oil prices bounced back.
KEEPING SCORE: France's CAC 40 added 0.9 percent in early trading to 4,360.52 and Germany's DAX also rose 0.7 percent to 10,051.06. Britain's FTSE 100 gained 0.7 percent to 6,164.57. Dow futures edged up 0.6 percent to 17,747. S&P 500 futures were also up 0.6 percent to 2,066.60.
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CHINA FACTOR: China's Cabinet approved measures to boost exports as Beijing struggles to reduce gluts in many industries and reverse an export decline that threatens to cause politically dangerous job losses. The measures announced late Monday include more bank lending, an increase in tax rebates and support for export credits. They followed a decline in trade in April.
ENERGY: U.S. crude rose 31 cents to $43.75 a barrel in electronic trading on the New York Mercantile Exchange. It fell $1.22 overnight to $43.44. Brent crude, the benchmark for international oil prices, added 54 cents to $44.17 a barrel in London.
THE QUOTE: "Two developing macro themes are set to dominate markets in the near-term: the continued gain in the U.S. dollar and the pullback in the oil price. Last night saw these trends continue to develop," Angus Nicholson of IG said in a note.
ASIA'S DAY: Japan's benchmark Nikkei 225 added 2.2 percent to 16,565.19 as the dollar regained strength, a boon for the nation's exporters. Australia's S&P/ASX 200 rose 0.4 percent to 5,342.80. South Korea's Kospi added 0.8 percent to 1,982.50. Hong Kong's Hang Seng added 0.4 percent to 20,242.68, while the Shanghai Composite inched up 0.02 percent to 2,832.59.
CURRENCIES: The dollar rose to 109.00 yen from 108.29 yen. The euro slipped to $1.1390 from $1.1401.
(KA)