Global stocks rebound as Paris impact worries fade

Pedestrians walk past a share prices board in Tokyo on Nov. 17, 2015.

YOSHIKAZU TSUNO/AFP/Getty Images

SEOUL, South Korea - Global stock markets were mostly higher on Tuesday as investors looked past last week's attacks in Paris. Tokyo stocks rose on expectations of further stimulus measures by Japan's central bank.

European stocks rallied in early trading, with Britain's FTSE 100 up 1.7 percent at 6,250.17. Germany's DAX rose 1.4 percent to 10,865.76, while France's CAC 40 jumped 1.7 percent to 4,886.60.

U.S. markets looked set for a higher open: S&P futures gained 0.3 percent while Dow futures added 0.5 percent.

Asian stocks finished mostly higher on stimulus hopes. Japan's Nikkei 225 gained 1.2 percent to 19,630.63 and South Korea's Kospi rose 1.1 percent to 1,963.58. Hong Kong's Hang Seng index advanced 1.2 percent to 22,264.25, while the Shanghai Composite index in mainland China erased earlier gains, finishing 0.1 percent lower at 3,604.80. Australia's S&P/ASX 200 surged 2.3 percent to finish at 5,118.20. Stocks in Taiwan and Southeast Asian countries also closed higher.

Investors restored calm after sell-offs during the first trading session following the attacks in Paris that left 129 people dead and more than 350 injured. The negative impact of the attacks on the financial markets is likely to fade over the next week after initial drops, even though the emotional impact may stay on, said Bernard Aw, a market strategist at IG in Singapore. In past major attacks across the world, markets recovered to the levels before the attacks.

Analysts said there were higher expectations that the Bank of Japan would roll out stimulus measures after data showed that the world's third-largest economy had slipped again into a recession. Japan's economy declined 0.8 percent in the third quarter over a year earlier, in its second straight quarterly contraction. Mizuho Bank said in a daily commentary that a policy response is "more urgent" and that the prospects of more easing pressured the Japanese yen against the U.S. dollar.

Benchmark U.S. crude lost 8 cents at $41.66 per barrel in New York. The contract climbed $1, or 2.5 percent, to close at $41.74 a barrel. Brent crude, used to price international oils, added 22 cents to $44.78 a barrel in London.

The dollar erased earlier gains, trading nearly unchanged at 123.28 yen. The euro fell to $1.0658 from $1.0686.