Global stocks jump on Tokyo stimulus, UK growth

Global shares mostly rallied Wednesday after Tokyo launched a massive stimulus package, with sentiment also cheered by accelerating economic growth in Britain and upbeat company results.

Awaiting the US Federal Reserve's imminent interest rate decision, Wall Street won an opening boost from Apple, whose third-quarter earnings topped expectations. US stocks later dipped.

London stocks closed slightly higher, as data showed the British economy grew by 0.6 percent in the second quarter, after 0.4 percent expansion in the previous three months, despite Brexit fears.

In the eurozone, Frankfurt stocks grew by 0.7 percent and Paris was 1.2 percent up.

"The markets benefited today from quite a good cocktail which reinforced their rise", especially the Japanese stimulus plan, Saxo Bank's Christopher Dembik said.

"The big amounts are quick to reassure the markets," especially as there will be "probably other announcements", he added.

- Earnings boost Paris -

The French market also climbed on solid earnings from aerospace giant Airbus, automaker Peugeot-Citroen, and luxury goods giant LVMH.

Shares in Airbus lifted more than 4 percent, while Peugeot-Citroen revved 9.3 percent higher and LVMH won 7.5 percent.

Prime Minister Shinzo Abe unveiled the 28-trillion-yen ($266-billion) programme days before the Bank of Japan holds its own meeting that is widely expected to see it loosen monetary policy.

Bolstered by a landslide parliamentary election win earlier this month, Abe had promised to ramp up spending on the stuttering economy following Britain?s shock vote to leave the EU dampened the global outlook.

Promises of support from governments and central banks around the world since the Brexit vote last month have provided the foundation for recent big gains across equities markets.

Tokyo stocks ended the day 1.7 percent higher. The dollar rose to 105.71 yen from 104.64.

"The weakness in the yen ... has been driven by a speech from Abe announcing plans for more than 28 trillion yen's worth of stimulus," said economist Jeremy Cook at foreign exchange traders WorldFirst.

"How much of this is new spending is unclear with a full policy announcement expected."

The BoJ ends its gathering Friday and is widely tipped to unveil fresh stimulus as the world's number three economy struggles and inflation is virtually non-existent.

But while expectations of new measures have boosted Japanese stocks and sent the yen tumbling -- helping exporters -- analysts warned of a sharp sell-off if policymakers disappoint.

- Fed shifts into focus -

The immediate focus is now on the Fed, which ends its meeting later Wednesday.

While it is not expected to announce any new policy measures, dealers are keen to see its appraisal of the US economy and plans for interest rates in light of a string of positive data, including on jobs.

"The bigger surprise would be if the Fed walked a dovish line in the directive, creating an impression for the market that a rate hike will likely wait until 2017," said Briefing.com analyst Patrick O'Hare.

While the Nikkei soared, other markets stuttered. Hong Kong ended 0.4 percent up and Sydney was marginally higher.

Shanghai tumbled 1.9 percent following a report that China?s banking regulator was considering clamping down on the nation?s multi-trillion-dollar wealth management products market.

- Key figures at 1545 GMT -

London - FTSE 100: UP 0.4 percent at 6,750.43 points (close)

Frankfurt - DAX 30: UP 0.7 percent at 10,319.55 points (close)

Paris - CAC 40: UP 1.2 percent at 4,446.96 points (close)

EURO STOXX 50: UP 0.5 percent at 2,993.66

New York - DOW: DOWN 0.1 percent at 18,457.69

Tokyo - Nikkei 225: UP 1.7 percent at 16,664.82 (close)

Hong Kong - Hang Seng: UP 0.4 percent at 22,218.99 (close)

Shanghai - Composite: DOWN 1.9 points at 2,990.00 (close)

Euro/dollar: UP at $1.0992 from $1.0986

Pound/dollar: DOWN at $1.3093 from $1.3132

Dollar/yen: UP at 105.71 yen from 104.64 yen