Tuesday, June 5, 2012

Global shares rebound on stimulus hopes

US stocks rose on Tuesday, recovering some ground from last week's selloff, as data showing the vast US services sector improved in May outweighed investor angst about the euro zone's fiscal crisis.

The Dow Jones industrial average was up 26.49 points, or 0.22 percent, at 12,127.95. The Standard & Poor's 500 Index was up 7.32 points, or 0.57 percent, at 1,285.50. The Nasdaq Composite Index was up 18.10 points, or 0.66 percent, at 2,778.11.

European shares rose after a choppy, nervous session as investors tentatively bought into beaten-down shares on hopes for global central bank policy action to revive the economic recovery.

The Euro STOXX 50 closed up 0.4 percent at 2,087.31, extending the previous session's modest bounce off Friday's eight-month closing low in the aftermath of a dismal US jobs report. Volumes were curbed by a second day of UK public holidays.

In Asia, Nikkei average sprang back on Tuesday from four straight sessions of losses as investors snapped up big name bargains ahead of emergency talks between the G7 industrialised nations to tackle a deepening euro zone crisis.

The Nikkei advanced 1 percent to 8,382.00, boosted by Canon Inc 's gain of 3.4 percent on plans to buy back up to $640 million worth of its own shares.

The broader Topix index recovered today to close up 1.8 percent at 708.24, gaining a foothold above 700 after breaching that level to hit a 28-year low yesterday.