Business

European stocks mixed after Asia falls; Tokyo down 3 percent

Posted May 02, 2016 7:00 am

By YOUKYUNG LEE

People are reflected on the electronic board of a securities firm in Tokyo, Monday, May 2, 2016. Asian stock markets fell Monday as investors displayed their disappointment over the lack of further stimulus from Japan's central bank. The surge in the Japanese yen and a bleak outcome from a monthly factory managers' survey did little to lighten the gloom. (AP Photo/Shizuo Kambayashi) The Associated Press

SEOUL, South Korea (AP) - European shares rose on Monday despite a poor start for the week in Asia, where the Tokyo benchmark fell more than 3 percent as investors registered their disappointment over the lack of new stimulus from Japan's central bank.

KEEPING SCORE: Germany's DAX rose 1 percent to 10,140.88 and France's CAC 40 added 0.6 percent to 4,453.24. Britain's FTSE 100 was closed for a bank holiday. Wall Street looked set for an upbeat day, with Dow and S&P 500 futures both up 0.2 percent.

JAPAN'S MALAISE: The Bank of Japan's policy meeting on Thursday foiled expectations it might act to shore up flagging growth. Japan's markets were closed Friday for a national holiday, and with Monday's open came further disappointment with monthly survey of purchasing managers showing a sharp deterioration in manufacturing conditions. The rise in the Japanese yen to nearly 105 yen to the dollar, meanwhile, is hurting exporters, whose overseas profits tend to gain in yen terms when the yen is weaker.

ANALYST'S TAKE: "While lingering disappointment from the Bank of Japan's inaction continues to weigh on Japanese markets, negative sentiment started filtering through to other global markets and this ripple effect should be closely monitored," said Stephen Innes, a senior foreign exchange trader at OANDA.

ASIA SCORECARD: Tokyo's Nikkei 225 slumped 3.1 percent to 16,147.38, while South Korea's Kospi fell 0.8 percent to 1,978.15. Australia's S&P/ASX 200 lost 0.1 percent to 5,312.00. Stocks in the Philippines and Indonesia were also lower. Markets in Hong Kong, Shanghai, Taiwan and Singapore were closed for a public holiday.

OIL: Benchmark U.S. crude shed 5 cents to $45.88 per barrel in electronic trading on the New York Mercantile Exchange. The contract lost 11 cents on Friday. Brent crude, used to price international oils, fell 19 cents to $47.18 in London.

CURRENCIES: The dollar rose to 106.61 yen from 106.36 yen while the euro strengthened to $1.1480 from $1.1447.

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This story has been corrected to show that Britain's stock market is closed for a bank holiday.

A man walks past an electronic stock indicator of a securities firm in Tokyo, Monday, May 2, 2016. Asian stock markets fell Monday as investors displayed their disappointment over the lack of further stimulus from Japan's central bank. The surge in the Japanese yen and a bleak outcome from a monthly factory managers' survey did little to lighten the gloom. (AP Photo/Shizuo Kambayashi) The Associated Press

A man looks at an electronic stock indicator of a securities firm in Tokyo, Monday, May 2, 2016. Asian stock markets fell Monday as investors displayed their disappointment over the lack of further stimulus from Japan's central bank. The surge in the Japanese yen and a bleak outcome from a monthly factory managers' survey did little to lighten the gloom. (AP Photo/Shizuo Kambayashi) The Associated Press

Women walk past an electronic stock indicator of a securities firm in Tokyo, Monday, May 2, 2016. Asian stock markets fell Monday as investors displayed their disappointment over the lack of further stimulus from Japan's central bank. The surge in the Japanese yen and a bleak outcome from a monthly factory managers' survey did little to lighten the gloom. (AP Photo/Shizuo Kambayashi) The Associated Press

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