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Global shares rise on China stimulus promise, oil recovery

TOKYO – Global shares rose Tuesday after a fresh promise of stimulus from Beijing helped to counter pessimism over recent weak trade data from China, and oil prices bounced back.

KEEPING SCORE: France’s CAC 40 added 0.9 per cent in early trading to 4,360.52 and Germany’s DAX also rose 0.7 per cent to 10,051.06. Britain’s FTSE 100 gained 0.7 per cent to 6,164.57. Dow futures edged up 0.6 per cent to 17,747. S&P 500 futures were also up 0.6 per cent to 2,066.60.

CHINA FACTOR: China’s Cabinet approved measures to boost exports as Beijing struggles to reduce gluts in many industries and reverse an export decline that threatens to cause politically dangerous job losses. The measures announced late Monday include more bank lending, an increase in tax rebates and support for export credits. They followed a decline in trade in April.

ENERGY: U.S. crude rose 31 cents to $43.75 a barrel in electronic trading on the New York Mercantile Exchange. It fell $1.22 overnight to $43.44. Brent crude, the benchmark for international oil prices, added 54 cents to $44.17 a barrel in London.

THE QUOTE: “Two developing macro themes are set to dominate markets in the near-term: the continued gain in the U.S. dollar and the pullback in the oil price. Last night saw these trends continue to develop,” Angus Nicholson of IG said in a note.

ASIA’S DAY: Japan’s benchmark Nikkei 225 added 2.2 per cent to 16,565.19 as the dollar regained strength, a boon for the nation’s exporters. Australia’s S&P/ASX 200 rose 0.4 per cent to 5,342.80. South Korea’s Kospi added 0.8 per cent to 1,982.50. Hong Kong’s Hang Seng added 0.4 per cent to 20,242.68, while the Shanghai Composite inched up 0.02 per cent to 2,832.59.

CURRENCIES: The dollar rose to 109.00 yen from 108.29 yen. The euro slipped to $1.1390 from $1.1401.

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