Sep 30, 2014 8:20 AM
Global stock markets mostly turn higher
The Associated Press
BANGKOK (AP) Global stocks turned higher on Tuesday, recovering from recent losses, though investors were monitoring protests in Hong Kong, a major financial center, as a potential risk to stability in Asian trading.
KEEPING SCORE: France's CAC-40 rose 1.2 percent to 4,411.67 and Germany's Dax gained 0.5 percent to 9,471.03. Britain's FTSE 100 edged down 0.1 percent to 6,639.65. Wall Street looked poised to recover some of Monday's losses, with futures for the Dow Jones industrial average and Standard & Poor's 500 both up 0.3 percent.
ASIA'S DAY: Hong Kong's Hang Seng Index tumbled 1.3 percent to 22,932.98 points after protesters blocked streets in the business district. Tokyo's Nikkei 225 fell 1.5 percent but rebounded to end the day down 0.8 percent at 16,173.52. China's Shanghai Composite Index rose 0.3 percent to 2,363.87 and India's Sensex rose 0.8 percent to 26,799.93. Sydney and Bangkok also rose while Singapore and Jakarta declined.
HONG KONG PROTESTS: Thousands of people have blocked streets in the territory's business district to protest government plans to require candidates in the territory's first election for its leader to be approved by a panel dominated by business leaders who support the communist mainland government. Some banks and schools closed temporarily and some public transit was suspended but analysts say they see no large-scale impact yet on the territory's economy.
THE QUOTE: "U.S. stocks fell overnight against a geopolitical backdrop that was worsened by the ongoing protests in Hong Kong," said Desmond Chua of CMC Markets in a report.
EUROZONE STIMULUS HOPES: Market sentiment was helped somewhat in Europe by economic data that has raised the possibility that the European Central Bank might provide more stimulus to the economy. Another drop in the inflation rate, to an annual 0.3 percent in September, adds pressure on the ECB to start a more aggressive stimulus program involving large-scale purchases of bonds, the way the Fed has done. Analysts do not, however, expect such a move as soon as the next meeting on Thursday.
GLUM ASIAN DATA: HSBC Corp. said a monthly survey showed manufacturing grew in September but only at August's slow rate. The bank's China economist, Hongbin Qu, said that showed the economy faces downside risks and requires more help from monetary and fiscal policy. Government data in Japan, meanwhile, showed industrial output there fell 1.5 percent in August, much weaker than the modest increase expected by forecasters. Wage growth slowed to 1.4 percent over a year earlier from the previous month's 2.4 percent.
ENERGY, CURRENCIES: Benchmark U.S. crude fell 15 cents to $94.42. The contract lost 3 cents on Monday to close at $94.57. The dollar rose to 109.79 yen from Monday's 109.40 while the euro fell to $1.2583 from $1.2690 after the weak eurozone inflation data.