This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

European Stocks Shrug Off Japan Dip (Update2)

Updated from 10:51 a.m. EDT with closing European market levels.

By Toby Sterling, AP Business Writer

AMSTERDAM -- With U.S. markets closed, world stocks ended Monday mostly higher -- with Japan the notable exception as the Nikkei sold off sharply for the second time in a week.

The decline came after Bank of Japan Governor Haruhiko Karoda said over the weekend Japanese interest rates could rise without causing instability, despite the country's large national debt.

The Nikkei 225 shed 3.2% to close at 14,142.65, with exporters hit hardest due to the rising yen. That's the reverse of the picture for most of this year, as yen losses have helped propel the index to a 36% gain since January.

Among major losers Monday, Nissan Motor Corp. dropped 6.8%. Yamaha Motor Co. tumbled 7.9%. Sony Corp. slid 6.3%.

The index also lost 7.3% on May 23, as investors have begun to wonder whether potential benefits of Prime Minister Shinzo Abe's aggressive campaign to lift consumer prices and encourage borrowing and spending have already been priced in.

In European trading, Germany's DAX rose 0.9% to 8,381.30. France's CAC-40 advanced 0.9% to 3,994.25. Markets in Britain and the U.S. were closed for public holidays.

European Central Bank board member Joerg Asmussen said in a speech in Berlin that with the eurozone countries in recession, the bank would continue to pursue easy monetary policy "as long as necessary."

Cees Smit, director at Amsterdam brokerage Today's Vermogensbeheer in Amsterdam, said most of the excitement in European stocks came in the morning.

"We were looking at Japan earlier and it was surprising how well European markets were reacting," he said.

He said trade had quieted by the afternoon and stocks drifted off their earlier highs as investors began contemplating U.S. May unemployment figures due out Tuesday.

Other global markets were mixed.

Hopes for a global economic recovery were undermined last week when a survey on China's monthly manufacturing pace showed a bigger-than-expected decline. Less-than-clear indications from the U.S. Federal Reserve on whether it might scale back its aggressive bond-buying program, dubbed quantitative easing or QE, also caused investors to curb their enthusiasm.

Hong Kong's Hang Seng index reversed early losses Monday to rise 0.3% to 22,686.05 after pledges by China's leaders to pursue sustainable growth helped push up alternative energy stocks. China Everbright International jumped 5%. Anton Oilfield Services, which is pursuing shale gas development in China, surged 8.3%.

"We have seen a lot of funds buying into shale gas, wind power and environmental protection," said Jackson Wong, vice president at Tanrich Securities in Hong Kong. Wong also said that a recovery in mainland Chinese stocks helped the Hang Seng.

South Korea's Kospi gained 0.3% to 1,979.97. Benchmarks in mainland China and Taiwan rose. Australia's S&P/ASX 200 declined 0.5% to 4,959.90. Benchmarks in the Philippines, New Zealand and Indonesia fell.

Benchmark oil for July delivery was down 55 cents to $93.60 in electronic trading on the New York Mercantile Exchange. The contract fell 10 cents to $94.15 a barrel on the Nymex on Friday.

In currencies, the euro dropped slightly to $1.29324 from $1.2934 late Friday in New York. The dollar was at 101.09 yen, down from last week's high of more than 103 yen per dollar.

___

AP Business Writer Pamela Sampson contributed to this story from Bangkok.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs