Stocks gain on ECB stimulus hopes, HK-China link

Source: AP-Excite

By ELAINE KURTENBACH

TOKYO (AP) — European shares were higher Monday, supported by expectations the European Central Bank is prepared to offer new stimulus to nurse the region's recovery. Gains in Asia were spurred by approval of a cross-border trading link between Hong Kong and Shanghai that will give foreigners greater access to Chinese shares.

KEEPING SCORE: Britain's FTSE 100 gained 0.4 percent in early trading to 6,592.40 and the CAC-40 in France added 0.4 percent to 4,207.28. Germany's DAX was up 0.2 percent at 9,308.64. Wall Street looked poised to edge higher. Dow Jones industrials futures were up 0.1 percent at 17,522. S&P 500 futures added 0.05 percent to 2,027.10.

BUYING CHINA: China and Hong Kong led gains in Asia following the approval of a cross-border trading link that will give foreigners greater access to Chinese shares. That potentially could draw in more buyers and boost shares which have languished since hitting a peak in 2006. Authorized investors in both cities will be allowed to buy and sell up to 23.5 billion yuan ($3.8 billion) of stocks in certain companies each day through the link. Mainland Chinese investors will get up to 10.5 billion yuan of that daily limit, while investors in Hong Kong get the rest. The link is expected to go live on Nov. 17.

THE QUOTE: The Hong Kong-Shanghai link "has prompted financial brokerage-related stocks higher, as investors feel optimistic about the prospect of global investors accessing Chinese stocks from Hong Kong," said Stan Shamu, market strategist at IG in Melbourne, Australia.

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People are reflected on the electronic board of a securities firm in Tokyo, Monday, Nov. 10, 2014. Asian stock markets were mostly higher Monday after the release of strong U.S. jobs figures and weekend data showing China's exports remained on an upward trend. (AP Photo/Koji Sasahara)


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