BANGKOK (AP) — Asian stock markets rose Tuesday as tensions on the Korean peninsula eased a few notches. European shares advanced.
Investors spent the previous day worried about possible North Korean retaliation against South Korean military drills on a frontline island that was shelled by the North last month.
Instead, Pyongyang backed off threats to strike back and reportedly offered concessions on its nuclear program.
In early European trade, France’s CAC-40 rose 0.6 percent to 3,908.38 and Britain’s FTSE 100 was up 0.7 percent at 5,930.59. Germany’s DAX gained 0.5 percent to 7.055.05.
Wall Street was set to gain with Dow futures ahead by 37 points, or 0.3 percent, at 11,442. Broader S&P futures were higher by 5 points, or 0.4 percent, at 1,246.20.
Japan’s Nikkei 225 stock average closed up 1.5 percent to 10,370.53 after the Bank of Japan kept monetary policy unchanged at the current super loose setting after a key survey last week showed deteriorating business sentiment. Exporters climbed, with Sony Corp. up 2.7 percent and Canon Inc. adding 1.6 percent.
Hong Kong’s Hang Seng index added 1.6 percent to 22,993.86. South Korea’s Kospi advanced 0.8 percent to 2,037.09 and Australia’s S&P/ASX 200 gained 0.8 percent at 4,771.90.
China’s Shanghai Composite Index jumped 1.8 percent to 2,904.11. Markets in Taiwan, India, and Singapore also rose.
In New York Monday, low trading volumes and a lack of economic reports kept stocks confined to a narrow range Monday. Indexes finished mixed and bond yields were barely changed.
The Dow Jones industrial average fell 13.78, or 0.1 percent, to 11,478.13. The broader Standard and Poor’s 500-stock index rose 3.17, or 0.3 percent, to 1,247.08. The Nasdaq composite index gained 6.59, or 0.3 percent, to finish at 2,649.56.
In currencies, the dollar slipped to 83.69 yen from 83.78 yen late Monday. The euro rose to $1.3140 from $1.3126.
Benchmark oil for February delivery gained 23 cents to $89.60 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 77 cents to settle at $89.37 on Monday.