Global stocks rebound as Paris worries fade

SEOUL, South Korea (AP) - Global stock markets were mostly higher on Tuesday as investors looked past last week's attacks in Paris. Tokyo stocks rose on expectations of further stimulus measures by Japan's central bank.

KEEPING SCORE: Britain's FTSE 100 rose 1.7 percent to 6,251.30 and Germany's DAX rose 1.8 percent to 10,909.94. France's CAC 40 jumped 2.1 percent to 4,910.11. Futures showed that U.S. stock markets were set for small gains. S&P futures gained 0.2 percent while Dow futures added 0.3 percent.

PARIS: Investors restored calm after sell-offs during the first trading session following the attacks in Paris that left 129 people dead and more than 350 injured. The negative impact of the attacks on the financial markets is likely to fade over the next week after initial drops, even though the emotional impact may stay on, said Bernard Aw, a market strategist at IG in Singapore. In past major attacks across the world, markets recovered to the levels before the attacks.

Helping sentiment was a report showing business optimism rose more than expected in November in Germany, Europe's largest economy, thanks to strong domestic demand and a weaker euro. The data didn't fully reflect the Paris attacks, though the survey's authors say it does not appear to have had a significant impact.

JAPAN: Analysts said there were higher expectations that the Bank of Japan would roll out stimulus measures after data showed that the world's third-largest economy had slipped again into a recession. Japan's economy declined 0.8 percent in the third quarter over a year earlier, in its second straight quarterly contraction. Mizuho Bank said in a daily commentary that a policy response is "more urgent" and that the prospects of more easing pressured the Japanese yen against the U.S. dollar.

ASIA'S DAY: Asian stocks finished mostly higher on stimulus hopes. Japan's Nikkei 225 gained 1.2 percent to 19,630.63 and South Korea's Kospi rose 1.1 percent to 1,963.58. Hong Kong's Hang Seng index advanced 1.2 percent to 22,264.25, while the Shanghai Composite index in mainland China erased earlier gains, finishing 0.1 percent lower at 3,604.80. Australia's S&P/ASX 200 surged 2.3 percent to finish at 5,118.20. Stocks in Taiwan and Southeast Asian countries also closed higher.

OIL: Benchmark U.S. crude dropped 0.8 percent at $41.42 per barrel in New York. The contract climbed $1, or 2.5 percent, to close at $41.74 a barrel on Monday.

CURRENCIES: The dollar erased earlier gains, trading nearly unchanged at 123.19 yen. The euro fell to $1.0672 from $1.0686.