Nov 4, 2014 3:58 AM
European shares rise, Japan's Nikkei extends gains
The Associated Press
TOKYO (AP) European shares mostly rose Tuesday on expectations for strong corporate earnings. Japan's stock benchmark ceded some of its early gains to close 2.7 percent higher, while other Asian markets had gains and losses.
KEEPING SCORE: In Europe, quarterly earnings from BMW largely met expectations and the automaker maintained its forecast for profit growth for the full year. Germany's DAX rose 0.4 percent to 9,292.65 while France's CAC-40 added 0.1 percent to 4199.71. Britain's FTSE 100 was 0.1 percent higher at 6,493.46. Wall Street was poised for modest gains at the open, with Dow and S&P 500 futures both up 0.1 percent.
JAPAN'S STIMULUS: Investors continue to rejoice over the double-barreled barrage of stimulus unleashed on Friday. The Bank of Japan's decision to boost asset purchases will raise the amount of money being injected into the economy annually to about 80 trillion yen ($704 billion). Apart from that, the public pension fund is to pare its bond holdings and raise its investments in shares, to help improve the returns it is relying on to meet growing payout obligations.
CHINA'S SHADOW: A lower-than-expected gauge of Chinese manufacturing released by a government-sanctioned industry group has revived fears that growth in the world's second-largest economy will decline further.
THE QUOTE: "There may be some nervousness about the slowdown in China but now data suggests growth is stabilizing," said Linus Yip, a strategist at First Shanghai Securities. While a trend toward a weaker yen and stronger U.S. dollar can be bad news for many regional markets, it tends to attract funds into Hong Kong's share market, he said.
ASIA'S DAY: The Nikkei 225 in Tokyo jumped 4.1 percent early in the session but struggled to hold onto those gains, eventually ending up 2.7 percent at 16,862.47 in its first trading day since Japan announced the new measures Friday to boost faltering economic growth. The market was closed Monday for a holiday. Hong Kong's Hang Seng slipped 0.3 percent to 23,845.66 while South Korea's Kospi was 0.9 percent lower at 1,935.19. Australia's S&P/ASX 200 added 0.2 percent to 5,519.9. Southeast Asian markets were mixed.
CURRENCIES: The dollar was up and down against the yen in volatile trading following the BOJ stimulus announcement and rose to 113.72 yen by late afternoon from 113.59 yen late Monday. That puts the yen near a seven-year low. The euro rose to $1.2506 from $1.2504.
ENERGY: Benchmark U.S. crude oil was down $1.49 cents to $77.30 in electronic trading on the New York Mercantile Exchange. It fell $1.76 to close at $78.78 a barrel on Monday. Brent crude, the international benchmark, slipped $1.45 cents to $83.33.