LONDON: Europe's main stock markets kicked higher on Wednesday, aided by steadier oil prices and hopes of new Chinese economic stimulus measures, dealers said.
Frankfurt, London and Paris gained between 1.6 and 2.0 percent in value in late morning deals.
In contrast, most Asia indices hit reverse after a recent rally, with energy firms down after an oil output freeze deal by top producers Saudi Arabia and Russia left investors disappointed.
Shanghai shares however rallied more than one percent, adding to the previous day's surge, on hopes for fresh stimulus from China's leadership.
And world oil prices firmed ahead of a meeting between the Iranian and Iraqi oil ministers in the wake of the Saudi-Russian output agreement.
"Stable oil prices and rhetoric from the Chinese government promising measures to boost China's flagging economy has prompted a modest recovery in European markets on Wednesday," said analyst Jasper Lawler at trading firm CMC Markets.
The mining sector forged ahead on the brighter outlook for commodity demand from key consumer and Asian powerhouse economy China.
London's top gainer was Swiss mining giant Glencore, whose share price surged ten percent in value.
The stock was mostly buoyed after Glencore announced the early refinancing of its $8.45-billion (7.6-billion-euro) revolving credit facility.
In Asia meanwhile, an early rally lost steam as profit-takers moved in following some hefty gains on Monday and Tuesday.
Tokyo's Nikkei fell 1.36 after enjoying a more than seven percent surge in the previous two sessions, with a stronger yen acting as a millstone.
Hong Kong lost one percent, Sydney ended 0.6 percent lower and Seoul was 0.2 percent off.
The sell-off came despite gains in New York, where the Dow closed up 1.4 percent Tuesday, the S&P 500 rose 1.7 percent and the Nasdaq added 2.3 percent.
However, Shanghai added more than one percent -- on top of the 3.3 percent gain Tuesday -- on growing hopes for fresh measures to kick-start the world's number-two economy.
The rally came as reports swirled that China would make more cash available to local authorities to spend on new building projects, which reinforces speculation the government is planning fresh stimulus.
Later on Wednesday, the Federal Reserve will release minutes of its January policy meeting, which experts will pore over for clues about the bank's thinking on monetary policy.
Comments
Comments are closed for this article.