World stocks mainly higher on China stimulus hopes
SEOUL, South Korea - Most global stock markets rose Friday after low Chinese inflation numbers added to expectations Beijing will launch new stimulus. Japan's Nikkei retreated after hitting its highest level in 15 years.
In early trading, Germany's DAX index added 0.5 percent to 12,227.02 points and France's CAC 40 gained 0.2 percent to 5,220.64. On Thursday, both gained on optimism about the European central bank's bond-buying program.
On Wall Street, futures for the Standard & Poor's 500 index and the Dow were both up 0.2 percent. Both rose Thursday.
The Nikkei 225 gave up 1.5 percent to 19,907.63 after rising above 20,000 for the first since April 2000 during the morning session. The Shanghai Composite Index added 2 percent to 4,034.31, Seoul's Kospi rose 1.4 percent to 2,087.76 and Hong Kong's Hang Seng gained 1.2 percent to 27,272.39. Sydney's S&P ASX 200 gained 0.6 percent to 5,968.40 and Singapore, Manila and New Zealand also rose. India's Sensex shed 0.3 percent to 28,789.16.
Japan's Nikkei index rose above 20,000 points on expectations for Japan's economic recovery and brisk corporate earnings, following aggressive monetary stimulus. The benchmark index, however, could not sustain that level as investors turned to take profits.
China's March consumer inflation held steady at 1.4 percent, well below the government's official target, fueling expectations the central bank might launch new stimulus to fend off deflation. Producer prices fell 4.6 percent from a year earlier, extending a lengthy decline. Low inflation is a boon to consumers but a bout of potentially damaging deflation could add to fears about the Chinese growth outlook.
"We expect possibly the weakest" growth in China this quarter since the 2008 crisis, "and thus more easing," Citigroup economist Minggao Shen said in a report.
U.S. stocks edged higher Thursday, led by gains for energy companies as the price of oil stabilized following a big drop the day before. The Standard & Poor's 500 index rose 0.5 percent to 2,091.18. The Dow Jones industrial average gained 0.3 percent to 17,958.73. The Nasdaq composite advanced 0.5 percent to 4,974.56.
Benchmark U.S. crude shed 22 cents to $50.57 a barrel in electronic trading on the New York Mercantile Exchange. It rose 37 cents to close at $50.79 a barrel on Thursday. Brent crude, a benchmark for international oils used by many U.S. refineries, declined 10 cents to $57.60 per barrel in London.
The dollar edged down to 120.531 yen from 120.571 yen while the euro gained to $1.0669 from $1.0662.