Stocks up as China economy measures cheer markets

HONG KONG (AP) — World stocks were mostly higher Thursday, with Asian markets rallying late in the day amid reports of economy-boosting measures in China ahead of quarterly growth figures.

In early European trading, Germany's DAX rose 0.9 percent to 6,735.32 and France's CAC 40 advanced up 0.4 percent to 3250.70. The FTSE 100 index of leading British companies edged up 0.1 percent to 5,639.26.

U.S. stocks were poised to rise. Dow futures were up 0.5 percent to 12,807 while broader S&P 500 futures were up 0.5 percent to 1,371.50.

In Asia, Tokyo's Nikkei 225 advanced 0.7 percent to close at 9,524.79. Hong Kong's Hang Seng rose 0.9 percent to 20,327.32. Benchmark indexes rose in Taiwan, Australia, New Zealand and Singapore.

Seoul's Kospi dropped 0.9 percent to 1,976.14, with investor sentiment damped by North Korea's preparations to launch a long-range rocket in defiance of international warnings.

Mainland Chinese shares advanced strongly late in the day, with the benchmark Shanghai Composite Index gaining 1.8 percent to close at 2,350.86. The smaller Shenzhen Composite Index added 1.9 percent to 945.33. Shares in financials, real estate companies and coal miners led the gains.

Stocks were boosted by local media reports that Shenzhen, a prosperous exporting region bordering Hong Kong, plans new measures to boost its economy, analysts said.

"The gains won't last long, though, if there are no more positive financial policies released in the other cities," said Xu Xiaoyu, an analyst at China Investment Securities, based in Beijing.

Shenzhen Development Bank Co. gained 3.2 percent while Shenzhen Special Economic Zone Real Estate (Group) Co. jumped 10 percent, the maximum allowed by the market.

Poly Real Estate, China's second largest listed property developer, gained 1.6 percent and industry leader China Vanke added 2.2 percent following an expansion in the number of cities offering 15 percent discounts on mortgage interest rates for first-time home buyers.

Asian stocks started the day lower as investors tread cautiously ahead of the release of China's first quarter economic growth figures on Friday, which are expected to confirm a slowdown this year. China's government earlier this year cut its annual growth target to 7.5 percent from the 8 percent level in place since 2005. But those fears appeared to subside as the trading day went on.

Shares of Trinity Ltd. leapt 6.6 percent after the Hong Kong company, which owns a number of high-end menswear labels targeted at China's brand-hungry growing middle classes, announced it's buying British brand Gieves & Hawkes from another Hong Kong company.

Sands China Ltd. rose 3.4 percent a day after the company, which is Las Vegas Sands Corp.'s Macau casino arm, unveiled its fourth resort in the Asian gambling hub, which analysts said will help it gain market share.

In currency markets, the euro strengthened to $1.3133 from $1.3099 in late trading Wednesday. The dollar fell to 80.87 Japanese yen from 80.92 yen.

Benchmark oil for May delivery was down 3 cents to $102.67 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose by $1.68 to finish at $102.70 on Wednesday.

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Researcher Fu Ting in Shanghai contributed to this report.