Nov 11, 2014 3:53 AM
World stocks perked by another record US close
The Associated Press
TOKYO (AP) World stocks turned higher on Tuesday, with Tokyo closing at a seven-year high, as investor sentiment got a boost from another record close on Wall Street. U.S. markets were expected to keep marching higher.
KEEPING SCORE: France's CAC 40 added 0.6 percent to 4,248.06 and Germany's DAX rose 0.4 percent to 9,384.51. Britain's FTSE 100 inched up 0.2 percent to 6,621.80. Futures augured further gains on Wall Street Dow and S&P 500 futures were each up 0.2 percent.
THE QUOTE: "Investors reflected on sound corporate earnings and an encouraging macro environment," said Will Leys, sales trader at CMC Markets in Sydney. "The likelihood of low rates for the near term, combined with improving sentiment and low commodity prices, is currently offsetting concerns over the global growth outlook."
TRADE HOPES: Helping the mood was news that leaders of Asian-Pacific countries have agreed to work on the possible adoption of a Chinese-backed free-trade pact. Similar trade talks for the Pacific region initiated by the U.S. earlier did not include China, the world's second largest economy, so the latest proposal raises hopes for greater cooperation.
ASIA'S DAY: Japan's Nikkei 225 added 2.1 percent to 17,124.11, closing above 17,000 for the first time since October 2007, as a weakening yen added to optimism about the market's prospects. Hong Kong's Hang Seng rose 0.3 percent to 23,808.28 but China's Shanghai Composite lost 0.2 percent to 2,469.67. Australia's S&P/ASX 200 inched down 0.1 percent to 5,517.10 while markets in New Zealand and Southeast Asia rose.
CURRENCIES: The dollar rose to 115.89 yen from 114.94 yen late Monday. In late October, the dollar was buying about 108 yen but the Japanese currency has weakened considerably since then, driven lower by the Bank of Japan expanding its already lavish monetary stimulus.
Among other currencies, the euro slipped to $1.2423 from $1.2425 and the Russian ruble dropped 1.8 percent to 46.8 per dollar. It had rallied sharply the day before, when the central bank decided to float the currency.
ENERGY: Benchmark U.S. crude was down 7 cents to $77.33 a barrel in electronic trading on the New York Mercantile Exchange. It fell $1.25 to close at $77.40 on Monday.
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