Record-setting US Mkts Spur European indices; Asia Sinks

Hong Kong: European markets opened higher, while Asian stocks fell on Monday following a record-setting day for US stocks, as China’s stimulus package disappointed investor expectations. Germany’s DAX gained 1.2 per cent to 19,440.95. In Paris, the CAC 40 added 1.1 per cent to 7,418.83. Britain’s FTSE 100 also rose 0.7 per cent, to 8,129.57. The futures for the S&P 500 were 0.3 per cent higher and those for the Dow Jones Industrial Average were up 0.2 per cent.

In Asia, China approved a 6 trillion-yuan ($839 billion) plan during a meeting of its national legislature Friday. The long-anticipated stimulus is designed to help local governments refinance their mountains of debt in the latest push to rev up growth in the world’s second-largest economy. “It’s not exactly the growth rocket many had hoped for. While it’s a substantial number, the stimulus is less about jump-starting economic growth and more about plugging holes in a struggling local government system,” Stephen Innes of SPI Asset Management said in a commentary.