Asian stock markets mostly rise, led by China, after Wall Street’s advance

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Asian stock markets follow Wall Street advance

SINGAPORE — Asian stock markets were mostly higher Monday, led by China, as investors took heart from a late rally on Wall Street. European shares were mixed.

As trading got started in Europe, Britain’s FTSE 100 fell 0.3 percent, Germany’s DAX index lost 0.4 percent amid a renewed dive in the euro while France’s CAC-40 advanced 0.4 percent. Futures pointed to modest losses Monday on Wall Street.

Earlier in Asia, China’s Shanghai Composite index jumped 3.5 percent to 2,673.42 as jitters of tighter credit policies eased amid mounting hopes for the yuan to appreciate. Australia’s S&P/ASX 200 added 2.1 percent to 4,395.40 and Hong Kong’s Hang Seng gained 0.6 percent to 19,663.66.

Stock markets in South Korea, India, Singapore and Indonesia all gained.

Chinese President Hu Jintao on Monday promised more reforms of his country’s fixed yuan exchange rate but gave no timetable. Hu spoke amid a two-day meeting with U.S. officials including Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner.

Some analysts argue government measures to cool China’s surging property prices shouldn’t strongly undermine overall economic growth this year.

“Many market observers consider that the recent policy campaign against property speculation runs a high risk of causing a hard landing for the overall economy,” Morgan Stanley said in a report. “Our view is the potential negative impact is greatly overstated.”

“Goldilocks is the most likely scenario that will eventually play out for the year.”

Japan’s Nikkei 225 stock average dropped 26.14 points, or 0.3 percent, to 9,758.40 while Thailand’s benchmark index fell 2.3 percent with investors cautious after the worst political violence in the Thai capital in decades last week.

In New York on Friday, the Dow Jones industrial average rose 1.3 percent to 10,193.39, making back some of the steep losses recorded recently amid renewed worries about Europe’s debt problems.

The broader Standard & Poor’s 500 index rose 1.5 percent to 1,087.69, and the Nasdaq composite index added 1.1 percent to 2,229.04.

In currencies, the dollar fell to 90.02 yen on Monday from 90.19 yen Friday and the euro sank to $1.2435 from $1.2545.

Benchmark crude for July delivery was up 34 cents to $70.38 a barrel in electronic trading on the New York Mercantile Exchange.